I TESTED a "92% win rate" Bollinger Bands Trading Strategy with NO STOP LOSS - Scalping Strategy 😱
Doesn't work
No edge after realistic trading costs
- trades tested
- 107
- per trade after costs
- -40.71bp
- winners
- 58%
- years of data
- 14.7
On the daily EURUSD chart with Bollinger Bands (20, 2): go short when a candle closes above the upper band and hold until price touches the lower band; go long when a candle closes below the lower band and hold until price touches the upper band. There is no stop loss and no take profit; the opposite band is the only exit.
The exact rules we tested
- 01Instrument: EURUSD | Signal timeframe: 1d | Direction: both
- 02LONG when: close < bb.lower
- 03SHORT when: close > bb.upper
- 04Entry: market at next bar open
- 05Stop: none (as taught - the trade closes only on its exit rule)
- 06Exit longs when: high >= bb.upper
- 07Exit shorts when: low <= bb.lower