1. Buy when price breaks out of the upper band. 2. Exit has two options. Option 1 allows you to exit using lower band. Option 2 allows you to exit using moving average. 3. Option 1 preferred over option 2 if the instrument is highly volatile. 4. Slippage and commissions are not considered in the return calculation.
Notas de Lançamento
⋅
Modified the position sizing. Now it is based on the available capital.
Just of curiosity : why buy when breaks the upper band, shouldn't it buy when it breaks the lower one ? I'm trying to understand BB, your answer would be very appreciated
interesno
⋅
@drutrading88, i tested.. with "upper" it's better, than with lower :) i'm surprised :)
oneman2amazing
⋅
@drutrading88, The bands do no suggest buy or sell signals themselves and price can stay in the upper or lower for a while.
Senthaamizh
⋅
@drutrading88, Yes, you are right. It was built to find the reversing points but it works only in sideways market and not when the instrument is trending. In the long run, Index are always trending so I am buying the breakout of upper band.
wangtzuchao
⋅
Anyone knows how to put a timeframe into this script? For example, back test from 01/01/2015 to current date.
I have tried a numberous of different addons but none of it worked.
Thanks in advance!!
Senthaamizh
⋅
@wangtzuchao, Check the below link. Hope it helps.
Just an idea like that, if the buy signal would happen when price breaks up the upper band AND when the BB width is at it's 6 months low, you would get a strategy that looks pretty much like the one described in the book Bollinger on Bollinger Bands. Actually I wish I could find such strategy.
Senthaamizh
⋅
@Madcaptains, it will be helpful if you can mention how the author calculates the BB width.
Just of curiosity : why buy when breaks the upper band, shouldn't it buy when it breaks the lower one ? I'm trying to understand BB, your answer would be very appreciated