Bollinger Bands Reversal Strategy Analyzer

22 ม.ค.

█ OVERVIEW
The Bollinger Bands Reversal Overlay is a versatile trading tool designed to help traders identify potential reversal opportunities using Bollinger Bands. It provides visual signals, performance metrics, and a detailed table to analyze the effectiveness of reversal-based strategies over a user-defined lookback period.

█ KEY FEATURES
Bollinger Bands Calculation

• The indicator calculates the standard Bollinger Bands, consisting of:
  A middle band (basis) as the Simple Moving Average (SMA) of the closing price.
  An upper band as the basis plus a multiple of the standard deviation.
  A lower band as the basis minus a multiple of the standard deviation.
  
• Users can customize the length of the Bollinger Bands and the multiplier for the standard deviation.
  

Reversal Signals

• The indicator identifies potential reversal signals based on the interaction between the price and the Bollinger Bands.
  
• Two entry strategies are available:
  
  • Revert Cross: Waits for the price to close back above the lower band (for longs) or below the upper band (for shorts) after crossing it.
    
  • Cross Threshold: Triggers a signal as soon as the price crosses the lower band (for longs) or the upper band (for shorts).
    

Trade Direction

• Users can select a trade bias:
  
  • Long: Focuses on bullish reversal signals.
    
  • Short: Focuses on bearish reversal signals.
    

Performance Metrics

• The indicator calculates and displays the performance of trades over a user-defined lookback period (barLookback).
  
• Metrics include:
  Win Rate: The percentage of trades that were profitable.
  Mean Return: The average return across all trades.
  Median Return: The median return across all trades.
  
• These metrics are calculated for each bar in the lookback period, providing insights into the strategy's performance over time.
  

Visual Signals

• The indicator plots buy and sell signals on the chart:
  
  • Buy Signals: Displayed as green triangles below the price bars.
    
  • Sell Signals: Displayed as red triangles above the price bars.
    

Performance Table

• A customizable table is displayed on the chart, showing the performance metrics for each bar in the lookback period.
  
• The table includes:
  
  • Win Rate: Highlighted with gradient colors (green for high win rates, red for low win rates).
    
  • Mean Return: Colored based on profitability (green for positive returns, red for negative returns).
    
  • Median Return: Colored similarly to the mean return.
    

Time Filtering

• Users can define a specific time window for the indicator to analyze trades, ensuring that performance metrics are calculated only for the desired period.
  

Customizable Display

• The table's font size can be adjusted to suit the user's preference, with options for "Auto," "Small," "Normal," and "Large."
  

█ PURPOSE
The Bollinger Bands Reversal Overlay is designed to:

• Help traders identify high-probability reversal opportunities using Bollinger Bands.
  
• Provide actionable insights into the performance of reversal-based strategies.
  
• Enable users to backtest and optimize their trading strategies by analyzing historical performance metrics.
  

█ IDEAL USERS

• Swing Traders: Looking for reversal opportunities within a trend.
  
• Mean Reversion Traders: Interested in trading price reversals to the mean.
  
• Strategy Developers: Seeking to backtest and refine Bollinger Bands-based strategies.
  
• Performance Analysts: Wanting to evaluate the effectiveness of reversal signals over time.
  

2 มี.ค.

เอกสารเผยแพร่

Improved buy and sell plots