Bollinger Band™ Strategy #2

Nov. 15, 2023

This week we’re looking at Bollinger Band™ strategies.

Why?

Because, so far, that indicator has produced hypothetical profit in 2023 (while many other strategies have failed in the last eleven months).

Our first example was using the GBPJPY in Forex.

Today we’ll switch to the E-Mini Dow Futures contract.

Will Bands work as well in Futures as it did in Forex? Let’s find out.

Here are the details:

YM 30-Minute Band Breakout

• Trading Hours: Regular session (YM.D in Tradestation)
• Long Entry: A break above the Upper Band (default 20 Length, 2.2 standard deviations)
• Target: $900
• Stop: $800

This should appeal to a buy-and-hold, index fund mindset and also appeal to traders who love indicators.

But does it produce profit?

Here’s the Report trading 1 contract each time from 2007-2023:

It almost doubles the return of an index fund (without dividends reinvested) over the same period, and that’s without compounding.

And it’s hypothetically nearing a new all-time equity peak.

Bollinger Bands™ strike again!

In our next Newsletter, we’ll look at another Band strategy on a different instrument.

Talk soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.