Bollinger Percent B Reversion (Python)

This approach fades price extremes beyond the Bollinger Bands using the Percent B indicator. Moves above the upper band or below the lower band suggest overextension. When percent B is less than zero or greater than one, the system bets on a return to the middle of the band. An exit threshold closes trades once momentum normalizes. Stops are placed at a fixed percentage from entry.

• Entry Criteria: Percent B outside the 0–1 range.

• Long/Short: Both directions.

• Exit Criteria: Percent B crosses ExitValue or stop.

• Stops: Yes.

• Default Values:

• BollingerPeriod = 20

• BollingerDeviation = 2.0m

• ExitValue = 0.5m

• StopLossPercent = 2.0m

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Mean Reversion

• Direction: Both

• Indicators: Bollinger Bands

• Stops: Yes

• Complexity: Basic

• Timeframe: Intraday

• Seasonality: No

• Neural Networks: No

• Divergence: No

• Risk Level: Medium