Bollinger Volume Strategy

Strategy that uses Bollinger Bands breakouts with volume confirmation. Enters positions when price breaks above/below Bollinger Bands with increased volume.

Testing indicates an average annual return of about 178%. It performs best in the stocks market.

Bollinger bands show volatility expansion and volume confirms the breakout. Positions are taken when price closes outside a band with strong activity.

Suited for breakout players expecting continuation. A stop based on ATR keeps losses manageable.

Details

• Entry Criteria:
  • Long: Close > UpperBand && Volume > AvgVolume * VolumeMultiplier
  • Short: Close < LowerBand && Volume > AvgVolume * VolumeMultiplier
• Long/Short: Both
• Exit Criteria:
  • Price returns to middle band
• Stops: ATR-based using StopLossAtr
• Default Values:
  • BollingerPeriod = 20
  • BollingerDeviation = 2.0m
  • VolumePeriod = 20
  • VolumeMultiplier = 1.5m
  • StopLossAtr = 2.0m
  • AtrPeriod = 14
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Mean reversion
  • Direction: Both
  • Indicators: Bollinger Bands, Volume
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium