TradeStation Strategy – Bollinger Bands Reversal Price Exit Setup

In this EasyLanguage tutorial, we look at the Bollinger Bands Reversal Strategy for TradeStation and MultiCharts.

This strategy works best in mean-reverting markets. As a result, it will be necessary to seek out mature and very liquid markets that usually react positively to these logics in the S&P500.

The entry rules are simple. When the previous bar’s closing price is lower than the lower band, and when the price of the last bar is greater than or equal to the upper band, it’s a buy trade (buy).

We’ve also included a little filter to prevent the software from reacting against market movements. The Bollinger Bands are typically compared to a slower-moving average in establishing the trend’s direction.

The fast-moving average must be greater than the moving average five times slower to buy, and vice versa to sell.

The exit method is more complicated. To begin with, when the price surpasses the median line, we have a classic exit. Second, we have a stoploss set at X times the ATR above the entry price.

Finally, if the position is losing money, we have an exit after X candles. We prefer this type of stop-loss since we want to make a lot of money quickly; otherwise, it is better to close the position.

EasyLanguage Strategy Code

code bollinger bands strategy for tradestation and multicharts Easylanguage

Bollinger Bands Reversal Strategy Back Test

Using this trading approach to Spy timeframe daily resulted in a substantial number of operations and an excellent average trade value of over $ 45.

We’re pleased since the short-term plan has worked as planned. In fact, finding bidirectional trading strategies in the stock market is difficult.

It can certainly be enhanced, but a Trading System with a profit factor of 1.81 is quite encouraging. No money management was used, and no backtests were run with different take-profit possibilities.

Read more about our Bollinger Bands Indicator in this article.

TradeStation Strategy trading strategies entry example
Mean Reverting Trading Strategies equity lines TradeStation
trading system BackTest with tradestation

ATTENTION!! THIS STRATEGY IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE.

DON’T USE WITH REAL MONEY !! READ THE DISCLAIMER