Strategy based on Bollinger Bands mean reversion
Bollinger Reversion fades moves outside the Bollinger Bands. Trades open against closes beyond the bands and close once price returns inside or hits a stop.
Standard deviation bands offer a statistical view of overextension. Entering after extreme closes aims to profit from the snap back toward the middle band.
Entry Criteria: Signals based on RSI, ATR, Bollinger.
Long/Short: Both directions.
Exit Criteria: Opposite signal or stop.
Stops: Yes.
Default Values:
BollingerPeriod = 20
BollingerDeviation = 2m
AtrMultiplier = 2m
CandleType = TimeSpan.FromMinutes(5)
[*]Filters:
Category: Mean Reversion
Direction: Both
Indicators: RSI, ATR, Bollinger
Stops: Yes
Complexity: Basic
Timeframe: Intraday (5m)
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium