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Bollinger band reversion strategyvsFair Value Gap strategy

Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· Fair Value Gap strategy: Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

Mean reversionLong only

Bollinger band reversion strategy

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

Mean reversionLong & short

Fair Value Gap strategy

Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

Indicators

  • Bollinger Bands (period 20, Οƒ Γ— 2)
  • Fair Value Gap (min gap 0.1%)

Timeframes

15m1h4h
5m15m1h4h

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 2Οƒ stretch below the 20-bar mean.
  • Single position; 3-bar cooldown after exit.
  • Long on the bar a bullish FVG opens (bull_signal > 0).
  • Short on a bearish FVG.

Exit rules

  • Exit when close pushes back above the middle band.
  • Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
  • Position closes the bar the gap is filled (rebalanced).
  • 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.

Momentum-into-imbalance β€” fires on explosive bars, exits when the imbalance reverts. Equity curve is choppy with frequent small trades; works best when price respects imbalances and gives the bot a chance to ride the displacement.

Complexity

1 ind Β· 2 entry Β· 2 exitBalanced
1 ind Β· 2 entry Β· 2 exitBalanced

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 Fair Value Gap strategy

  • You expect range-bound β€” the thesis is "Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills."
  • You want a long & short bot on 5m–4h candles with a balanced rule-set.
  • You're comfortable monitoring 1 indicator (Fair Value Gap (min gap 0.1%)).

Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

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†’

Fair Value Gap strategy

Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

Try Fair Value Gap strategy in dashboard β†’Read full breakdown β†’

Related comparisons

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