The “% Bollinger in Trend” strategy

The “% Bollinger in Trend” strategy

Hello everyone,

Here is a strategy that mixes the « % Bollinger » indicator, with the trend.

One of my readers made me discover an ebook of Charles Dereeper, who spoke of it. The concept does not come from him, it is well known.

But I found the idea of ​​associating this indicator with the trend very relevant, so I tried to code this strategy.

As a reminder, the « % Bollinger » indicator is defined by :

% Bollinger = (closing price – lower Bollinger) / (upper Bollinger – lower Bollinger)

The ProRealTime indicator is coded by myself like this :

We will associate this indicator with the trend.

In bull market, we go to purchase if :

close > MA100

MA20 > MA200

% Bollinger < 0.2 and % Bollinger < 0.2 on previous candle (consolidation)

We close the trade if :

% Bollinger > 1

As you can see on the following test (S&P500 INDEX, daily chart, spread 1 point), the strategy is very successful in the bull market : profit factor> 7 !

However, there is very few position (very selective criterias), which means that there are not many gross profits, much less for example than the Swing S&P500 strategy that I personally use.

Quite sad, as I’m always looking for concepts that can improve my own algorithms.

Actually, it would be quite possible to attempt to adapt this strategy to short positions, but it seems less profitable.

You are free to try to improve this strategy.

On the S&P500, it was profitable.

It is quite possible that the parameters for the CAC40, the DAX, the stocks, etc. can be adapted.

It’s up to you.

Best regards and happy trading !

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Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments : How to import ITF files into ProRealTime platform?

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  1. Nicolas • 137 days ago #

    Thanks for sharing. The backtest is made on a weekly chart in your example (that’s why PF is superior to 7). However, the strategy is also in gain on a daily timeframe. For everyone’s information, SP500 Index is not a tradable instrument, this strategy must be launched on a CFD account (ticked is US 500).

  2. Doctrading • 137 days ago #

    Hello Nicolas,
    You’re right ! I forgot to say that I wanted to make the strategy for long term trading, so I like the weekly timeframe.

    I wanted to join also a picture for daily timeframe, but the equity curve was more “sexy” on weekly timeframe, I could only join 1 picture.
    Best regards,

  3. JR1976 • 136 days ago #

    Dear Doc ,
    excellent concept
    Regards

  4. SimoneDasGupta • 135 days ago #

    Nice job! It makes good results also on DOW JONES Weekely and on DAX Daily, but also with the short.

  5. SimoneDasGupta • 135 days ago #

    // short position
    ca1s = close < average[100](close)
    ca2s = average[20](close) 1 and pB > 1

    IF ca1s and ca2s and ca3s THEN
    sellshort n shares at market
    ENDIF

    // exit short position
    if pB crosses under 0.2 THEN
    EXITSHORT at market
    ENDIF

  6. Jonas Rydqvist • 100 days ago #

    could someone make this a screener for me 🙂 ?

  7. rejo007 • 78 days ago #

    Hello,
    about this, i have problem with the code below
    this line “”””””””ca2s = average[20](close) 1 and pB > 1″”””
    and i dont have ca3s

    could you help me?
    thanks

    // short position
    ca1s = close 1

    IF ca1s and ca2s and ca3s THEN
    sellshort n shares at market
    ENDIF

    // exit short position
    if pB crosses under 0.2 THEN
    EXITSHORT at market
    ENDIF

    • Doctrading • 78 days ago #

      Hello rejo007,
      I don’t really understand your question. The code works fine for “long” trades. I didn’t make it for “short” trades.
      Give us you full code and we will fix it.
      Best regards,

  8. rejo007 • 78 days ago #

    C’est à propos de la partie “short” proposée par SimoneDasGupta un peu plus haut dans les commentaires.
    L’avez vous testé?

  9. Doctrading • 78 days ago #

    AH ok, I think the ca3 is the same :

    ca3 = pB[1] < 0.2 and pB < 0.2

    Best regards,

  10. chromosome21 • 61 days ago #

    Hello everybody,

    First, thank you so much for all your advices, I’m a begginer in trading and I think you are very helpful !
    I tried to make a screener with this indicator above but it doesn’t work, here is the screener as I write it :

    myMonindicateurBB = CALL “MonindicateurBB”(close)
    Trigger = myMonindicateurBB >= 1
    SCREENER[trigger](myMonindicateurBB)

    Could anyone help me for this !
    Thank’s very much in advance 🙂

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