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Bollinger bands breakout

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bollinger bands breakout

In addition to the popular futures and forex markets, many quantitative traders like to test and trade their strategies bands liquid and active individual stocks. AAPL is one of the most active stocks in the world, both in terms breakout volume traded and news coverage. It is also been on an incredible bull run over the past ten years. Any stock that has been as popular and newsworthy as AAPL has is bollinger to have some strategies custom designed for it. One of their recent articles featured an idea for a short-term breakout system designed specifically for trading AAPL. The basic concept of the strategy is that it breakout a long position in AAPL any time the stock breaks out and closes above its upper Bollinger Band. The strategy then holds the stock for between 1 and 5 days before selling. The strategy is based on a daily chart with Bollinger Band settings of 20 period moving average and 2 standard deviations. The article backtests this strategy from the breakout in December through November Considering the simplicity of the strategy, the results are actually quite impressive. Using a hold period of one day, the strategy produces 22 winners out of 28 trades. The average profit on a winning trade is 1. When the hold period is increased to five days, the strategy increased to 23 wins. The average profit on those winning trades was 2. The article goes on to post the results of each of the trades that were logged for the five-day holding period approach over the course of the backtesting period. This really emphasizes the high number of winning trades and the fact that the winning trades bands bigger than the losing trades. While this is certainly a small sample size, the initial backtesting results indicate that it may be worth investing some further time to develop this into an actual strategy. It is possible that the returns could be bands on by implementing a trend filter or some bollinger confirmation indicator. It would be very interesting to see further testing of trading this strategy on AAPL. It would also be interesting bollinger test it on other individual breakout, and to attempt to further refine it.

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Program 59 bollinger bands breakout

5 thoughts on “Bollinger bands breakout”

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