Bollinger RSI Strategy (C#)

Bollinger RSI Strategy

Bollinger RSI combines Bollinger Band overextension with RSI momentum signals. When price closes outside the bands but RSI shows divergence, a reversal is often near.

Testing indicates an average annual return of about 148%. It performs best in the forex market.

The system takes counter-trend trades on that divergence, exiting once price re-enters the bands or RSI crosses back.

A tight percent stop limits exposure in case volatility expands further.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLossPercent = 2
  • BollingerPeriod = 20
  • BollingerDeviation = 2
  • RsiPeriod = 14 A close above the upper band that is higher than the previous close above that band, while RSI is lower than it was then, is a bearish divergence and goes short; the mirror below the lower band goes long, reversing an opposite position. The position closes once price closes back inside the bands or RSI crosses back over 50.
• Filters:
  • Category: Mean reversion
  • Direction: Both
  • Indicators: Bollinger Bands, RSI
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium