Bollinger Bands Strategy (Backtest)
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Bollinger Bands Strategy (Backtest)
In this video, we'll explore the Bollinger Bands trading strategy, a widely-used indicator for traders globally. We'll explain what Bollinger Bands are, their functionality, optimal settings, accuracy, and effective trading rules, supported by backtests. Additionally, we'll show how to avoid common mistakes and share three techniques for spotting big market moves, timing entries, and following trends.
Bollinger Bands help identify market trends and volatility, and signal potential breakouts. They include a middle band (an N-day moving average) and two outer bands set at x standard deviations from the middle, usually two. These bands are also useful for mean reversion strategies.
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You can also read more about the findings here: https://www.quantifiedstrategies.com/bollinger-bands-trading-strategy/
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