Bollinger Bands Strategy," leverages Bollinger Bands to make trading decisions. Bollinger Bands consist of three key components: a basis line (moving average), an upper band, and a lower band, which are calculated using the standard deviation of price movements.
Logic:
Entry Condition (Long): A long position is entered when the close price rises above the upper Bollinger Band, signaling a potential breakout or strong upward momentum. Exit Condition: The long position is closed when the close price falls below the lower Bollinger Band, indicating potential downward pressure. Features:
Users can adjust the moving average type, lookback length, and standard deviation multiplier to fit their trading style. Trades are executed within a specified date range, which can be customized via inputs. The strategy uses 100% of capital for each trade and incorporates commission and slippage into the performance calculation. This strategy is suitable for trend-following traders looking to capture significant price movements using Bollinger Bands as the primary indicator.