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Bollinger band reversion strategyvsEMA fast/slow crossover strategy

Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· EMA fast/slow crossover strategy: Catch sustained moves by going long when the fast EMA crosses above the slow EMA.

Mean reversionLong only

Bollinger band reversion strategy

Fade a 2-sigma stretch below the mean and exit when price tags the middle band.

Trend followingLong only

EMA fast/slow crossover strategy

Catch sustained moves by going long when the fast EMA crosses above the slow EMA.

Indicators

  • Bollinger Bands (period 20, Οƒ Γ— 2)
  • EMA (period 12)
  • EMA (period 26)

Timeframes

15m1h4h
1h4h1d

Bias

Long only

Long only

Market fit

Range-bound

Strong directional trends

Entry rules

  • Enter long when close is below the lower Bollinger band β€” a 2Οƒ stretch below the 20-bar mean.
  • Single position; 3-bar cooldown after exit.
  • Enter long the bar after EMA(12) crosses above EMA(26).
  • Cooldown of 2 bars after an exit prevents instant whipsaw re-entries.

Exit rules

  • Exit when close pushes back above the middle band.
  • Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
  • Close on the down-cross: EMA(12) back below EMA(26).
  • Trailing stop of 4% locks in profits if the cross reverses without a clean down-cross.

Expected behavior

Smooth equity curve in low-volatility regimes with frequent small wins. Sharp drawdowns when a trend extends and price stays pinned below the lower band β€” the strategy expects mean reversion that may not arrive.

Long flat periods broken by sharp upward jumps when a sustained trend lines up β€” and visible drawdowns during ranging markets when the cross fires both ways inside a few bars.

Complexity

1 ind Β· 2 entry Β· 2 exitSimpler
2 ind Β· 2 entry Β· 2 exitMore advanced

Which one is right for you?

Derived from the bias, timeframe and indicator profile of each strategy β€” not a back-test forecast.

When to pick Bollinger band reversion strategy

  • You expect range-bound β€” the thesis is "Fade a 2-sigma stretch below the mean and exit when price tags the middle band."
  • You want a long-only bot on 15m–4h candles with a balanced rule-set.
  • You're comfortable monitoring 1 indicator (Bollinger Bands (period 20, Οƒ Γ— 2)).

Fade a 2-sigma stretch below the mean and exit when price tags the middle band.

When to pick EMA fast/slow crossover strategy

  • You expect strong directional trends β€” the thesis is "Catch sustained moves by going long when the fast EMA crosses above the slow EMA."
  • You want a long-only bot on 1h–1d candles with a balanced rule-set.
  • You're comfortable monitoring 2 indicators (EMA (period 12), EMA (period 26)).

Catch sustained moves by going long when the fast EMA crosses above the slow EMA.

Bollinger band reversion strategy

Fade a 2-sigma stretch below the mean and exit when price tags the middle band.

Try Bollinger band reversion strategy in dashboard β†’Read full breakdown β†’

EMA fast/slow crossover strategy

Catch sustained moves by going long when the fast EMA crosses above the slow EMA.

Try EMA fast/slow crossover strategy in dashboard β†’Read full breakdown β†’

Related comparisons

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