Aberration Trend Following Strategy by uzair2join

By uzair2join

Performance Metrics

Description

Aberration Trend-Following StrategyA legendary long-term trend-following system originally developed by Keith Fitschen in 1986, designed to capture major market trends using Bollinger Bands and volatility filtering.🔹 STRATEGY OVERVIEWThis mechanical system identifies trend reversals by detecting price breakouts beyond Bollinger Bands, while filtering trades based on market volatility conditions.🔹 ENTRY SIGNALS- Long Entry: Price closes above the upper Bollinger Band + volatility conditions met- Short Entry: Price closes below the lower Bollinger Band + volatility conditions met🔹 EXIT SIGNALS- Exit positions when price returns to the middle band (20-period SMA)🔹 VOLATILITY FILTER- Only trades when ATR is within acceptable range vs. historical median volatility- Avoids trading in extremely low or excessively high volatility environments- Helps reduce false signals during choppy, range-bound markets🔹 KEY PARAMETERS- Bollinger Band Period: 20 (customizable)- Bollinger Band Multiplier: 2.0 (customizable)- ATR Length: 20- Volatility Lookback: 50 periods- Volatility Range: 0.80 to 2.00 of median🔹 STRATEGY CHARACTERISTICS- Timeframe: Long-term (holds positions for extended periods)- Trade Frequency: 3-4 trades per market annually- Philosophy: Cut losses short, let profits run- Best suited for: Trending markets across commodities, futures, and indices⚠️ RISK DISCLAIMERThis strategy is for educational purposes only. Past performance does not guarantee future results. Always perform your own backtesting and risk assessment before live trading.📊 VISUALIZATION- Blue lines: Upper and lower Bollinger Bands- Orange line: Middle band (basis/SMA)- Green triangles: Long entry signals- Red triangles: Short entry signals- Yellow crosses: Exit signals

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