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Bollinger Band Re-entry (bbta-style)

What it does: Buys when price closes back inside the lower Bollinger Band after a dip below it. This buys when a candle closes back above the lower Bollinger Band after the price had dropped below it. The lower band marks an unusually low price compared with the last 20 candles.

Style: Mean reversion · Difficulty: Intermediate · Risk: medium · Ready: 2 of 2 variants

When people use it: It tends to work in sideways markets with weak trends (low ADX).

Where it struggles: It struggles in sharp crashes and in strong trends where the price 'walks' along the band instead of bouncing.

Markets it was written for: BTC, ETH, liquid alts (BB 20/2.5 on alts). Timeframes: 1h (15m-4h).

Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.

Long

Buys when price closes back inside the lower Bollinger Band after a dip below it.

Labels: Mean Reversion, Long, Spot, Intermediate, Medium

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (1h)

Entry

  • IF Price crosses above BB(20,2) Lower band (1h)
  • UNLESS (ADX(14) > 25 (1h) and ADX(14) −DI > ADX(14) +DI (1h)) or Price < EMA(200) (1d)

Exit: Indicator-Based Exit

  • IF Price touches BB(20,2) Middle band (1h)
  • Min profit: 0.3% (exit conditions only close once the trade is this far in profit after fees)
  • Loss controls: Stop-loss % 4%

Settings

Setting Default Editable What changing it does
Band length 20 Yes (sets 2 fields) How many candles the bands are based on. Shorter reacts faster and gives more signals; longer is smoother and gives fewer. Changes the entry band and the middle-band exit together.
Band width 2 Yes (sets 2 fields) How far the outer bands sit from the average. Lower means smaller moves count, so more trades; higher waits for bigger moves, so fewer trades. On jumpy coins a wider band (2.5) is suggested.
ADX veto level 25 Yes Trend strength above which (with the trend against you) the trade is skipped. Lower skips more trades and stays out of more trends; higher lets it trade in stronger trends, where re-entries fail more often.
Stop-loss % 4 Yes Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance.

How it works (as shown in the app)

  • This buys when a candle closes back above the lower Bollinger Band after the price had dropped below it. The lower band marks an unusually low price compared with the last 20 candles.
  • It sells when the price touches the middle band (the 20-candle average) with at least a small profit, or at the stop-loss.
  • It skips trades in a strong downtrend: when ADX (trend strength) is above 25 with sellers in control, or when the price is below its 200-day average.
  • It tends to work in sideways markets with weak trends (low ADX).
  • It struggles in sharp crashes and in strong trends where the price 'walks' along the band instead of bouncing.
  • Trades on 1-hour candles (15 minutes to 4 hours also work); small profit targets mean fees take a noticeable share.

Short (perp)

Shorts when price closes back inside the upper Bollinger Band after a spike above it.

Labels: Mean Reversion, Short, Futures, Medium, Backtest Only

  • Direction: Sell (short) · Market: swap
  • Trigger: On candle close · Main timeframe: Auto (1h)

Entry

  • IF Price crosses below BB(20,2) Upper band (1h)
  • UNLESS (ADX(14) > 25 (1h) and ADX(14) +DI > ADX(14) −DI (1h)) or Price > EMA(200) (1d)

Exit: Indicator-Based Exit

  • IF Price touches BB(20,2) Middle band (1h)
  • Min profit: 0.3% (exit conditions only close once the trade is this far in profit after fees)
  • Loss controls: Stop-loss % 3%

Settings

Setting Default Editable What changing it does
Band length 20 Yes (sets 2 fields) How many candles the bands are based on. Shorter reacts faster and gives more signals; longer is smoother and gives fewer. Changes the entry band and the middle-band exit together.
Band width 2 Yes (sets 2 fields) How far the outer bands sit from the average. Lower means smaller moves count, so more trades; higher waits for bigger moves, so fewer trades. On jumpy coins a wider band (2.5) is suggested.
ADX veto level 25 Yes Trend strength above which (with the trend against you) the trade is skipped. Lower skips more trades and stays out of more trends; higher lets it trade in stronger trends, where re-entries fail more often.
Stop-loss % 3 Yes Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance.

How it works (as shown in the app)

  • This shorts when a candle closes back below the upper Bollinger Band after the price had pushed above it. The upper band marks an unusually high price compared with the last 20 candles.
  • It buys back when the price touches the middle band (the 20-candle average) with at least a small profit, or at the stop-loss.
  • It skips trades in a strong uptrend: when ADX (trend strength) is above 25 with buyers in control, or when the price is above its 200-day average.
  • It tends to work in sideways markets with weak trends (low ADX).
  • It struggles in sharp rallies and short squeezes, and in strong trends where the price 'walks' along the upper band instead of falling back.
  • Trades on 1-hour candles (15 minutes to 4 hours also work); small profit targets mean fees take a noticeable share.
  • Shorting means you profit if the price falls and lose if it rises.
  • Suggested leverage is at most 2x. On isolated margin, at 2x the exchange closes the position (liquidation) if the price moves about 49.7% against you, and you lose the margin you put into it. Keep your stop well inside that.
  • For now this version runs in backtests only; paper and live futures trading are coming later.

Warnings

  • "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
  • Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
  • Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
  • "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.

Good to know

  • After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
  • Changing a setting before adding it also changes the saved name, so you can tell copies apart.
  • Past results don't predict future ones. Try it in a backtest and on paper before using real money.
  • Indicators used: ADX, BB, EMA.