[KL] Double Bollinger Bands Strategy (for Crypto/FOREX) by DojiEmoji
By DojiEmoji
Performance Metrics
- Author: DojiEmoji
- Symbol: BINANCE:ETHUSDT
- Timeframe: 1 hour
- Net P&L: +1,869.37 NONE (+96.36%)
- Win Rate: 54.6%
- Profit Factor: 1.389
- Max Drawdown: 890.39 NONE (37.94%)
- Total Trades: 152
- Sharpe Ratio: 0.568
Description
Sep 4, 2021This strategy uses a setup consisting of two Bollinger Bands based on the 20 period 20-SMA +/- (a) upper/lower bands of two standard deviations apart, and(b) upper/lower bands of one standard deviation apart.We consider price at +/- one standard deviation apart from 20-SMA as the "Neutral Zone". If price closes above Neutral Zone after a period of consolidation, then it's an opportunity for entry. Strategy will long, anticipating for breakout.The illustration below shows price closing above the Neutral Zone after a period of consolidation.https://a.c-dn.net/b/33wV42/double-bollinger-band-strategy_body_EURGBPDBBbreakoutstrategy.png.full.png[Source: Double Bollinger Band® Strategy to Trade Forex; Dailyfx provided by IG]Position is exited when prices closes at Neutral Zone (being lower than prior bars)Sep 6, 2021Release NotesUpdates:- new method for checking price consolidation (i.e. volatility of close price is low whenever coefficient of variation (cv) is below sma(cv,50))- avoids buying on down trends by not entering if sma(close,20) is below previous bar's valueSep 25, 2021Release NotesNew features:- strategy will enter into both long and short positions- trailing stop loss gets tightened when price moves sharply in favorable direction (can be toggled on/off for comparison)- added alerts