The Bollinger Bands Reversal Strategy That Actually Works (With MACD Filter)
Loses money
No edge after realistic trading costs
- trades tested
- 8,563
- per trade after costs
- -1.09bp
- winners
- 37%
- years of data
- 14.5
A reversal strategy that enters when price touches or pierces the outer Bollinger Band, confirmed by a MACD crossover and a reversal candlestick, exiting at the middle or opposite Bollinger Band.
The exact rules we tested
- 01Instrument: EURUSD | Signal timeframe: 15m | Direction: both
- 02LONG sequence: 1. low <= bb.lower THEN 2. (macd.line crosses above macd.signal) AND (close > open) (within 10 bars)
- 03SHORT sequence: 1. high >= bb.upper THEN 2. (macd.line crosses below macd.signal) AND (close < open) (within 10 bars)
- 04Entry: market at next bar open
- 05Stop: last swing (strength 5) +/- 2bp
- 06Exit longs when: high >= bb.mid
- 07Exit shorts when: low <= bb.mid