April 16, 2021 Update: This document refers to Bollinger Bands v3.2. Older versions have been deprecated (removed).

This strategy is based on the popular Bollinger Bands indicator. It buys when the current price is below the lower band and sells when either the profit target or stop-loss level has been reached or when the current price is above the upper band.

You can learn more about the Bollinger Bands indicator here.


General Settings:

  • Exchange: The exchange to run this bot on.

  • Market: The pair (symbol) to trade. Quadency's standard convention is Base/Quote. For example, in BTC/USD, BTC is base, and USD is quote.

  • Starting Capital: The maximum amount of Quote currency available to the bot for trading. When backtesting, this value can be any amount. However in live trading mode, the bot will stop trading if funds available in the Quote currency wallet become insufficient.

Strategy settings:

  • Candle Timeframe: Select the chart time frame for this strategy. Lower time frames result in more trades than higher, and vice versa.

  • Moving Average Period: Specify the look-back period (number of candles) for the simple moving average and standard deviation calculation.

  • Band Std Dev Multiplier: Select the standard deviation multiplier for the upper and lower band. Adjusting this will make the band wider or narrower.

  • Exit Condition: Select the exit condition for the current position (more details below)

Strategy Description

  • Buy Condition: Price is below the lower band - buy using 100% of available capital

  • Sell Condition: Profit Target or Stop-Loss (option 1), or Indicator Confirmation (option 2)

  1. Close the position when Profit Target or Stop-Loss is reached.

  2. Close when price crosses above the upper band (stop-loss and profit target will be ignored).

Order Types

  • This strategy sends all orders as Market orders. It is advisable to trade pairs with sufficient liquidity to avoid slippage. Thinly traded markets can result in worse than ideal fills, causing the profits to be smaller than expected.

Tips:

  • Shorter candle intervals result in more frequent trades than longer ones

  • Tighter profit target and wider stop-loss will result in smaller but frequent profits

  • The bot evaluates the position at the end of each candle interval, it is possible for the bot to not place any order if the conditions are met within the candle timeframe but not at the end.

  • Be sure to back-test your settings before starting live to make sure the strategy performs well on the market and the timeframe selected

  • Any profits from trades are automatically reinvested in subsequent trades. For example, if you start the bot with $100, and the first trade results in a $2 profit, the next trade will use $102, and so on.

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