Bollinger band reversion strategyvsEqual Highs/Lows strategy
Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· Equal Highs/Lows strategy: Fade the stop-hunt β short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
Bollinger band reversion strategy
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
Equal Highs/Lows strategy
Fade the stop-hunt β short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
Indicators
- Bollinger Bands (period 20, Ο Γ 2)
- Equal Highs/Lows (swing 3, threshold 0.1)
Timeframes
Bias
Long only
Long & short
Market fit
Range-bound
Range-bound
Entry rules
- Enter long when close is below the lower Bollinger band β a 2Ο stretch below the 20-bar mean.
- Single position; 3-bar cooldown after exit.
- Short on an EQH sweep β the stop-hunt fades and sellers step in.
- Long on an EQL sweep.
Exit rules
- Exit when close pushes back above the middle band.
- Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
- Opposite-direction sweep closes the trade β that's the next liquidity event.
- 4% trailing stop, 3-bar cooldown.
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.
Range-friendly. Frequent small trades when price oscillates between equal-highs and equal-lows pools; can stack losses in strong trends that take out structure cleanly without reversing.
Complexity
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 15mβ4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Bollinger Bands (period 20, Ο Γ 2)).
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
When to pick Equal Highs/Lows strategy
- You expect range-bound β the thesis is "Fade the stop-hunt β short EQH sweeps, long EQL sweeps, exit on the next liquidity event."
- You want a long & short bot on 15mβ4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Equal Highs/Lows (swing 3, threshold 0.1)).
Fade the stop-hunt β short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
Bollinger band reversion strategy
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
Equal Highs/Lows strategy
Fade the stop-hunt β short EQH sweeps, long EQL sweeps, exit on the next liquidity event.
Related comparisons
Other pairings that involve one of these strategies.
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