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Bollinger band reversion strategyvsMACD trend with ADX strength filter strategy

Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· MACD trend with ADX strength filter strategy: Take MACD long crossovers only when ADX confirms a trend actually exists.

Mean reversionLong only

Bollinger band reversion strategy

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

ConfluenceLong only

MACD trend with ADX strength filter strategy

Take MACD long crossovers only when ADX confirms a trend actually exists.

Indicators

  • Bollinger Bands (period 20, Οƒ Γ— 2)
  • MACD (12 / 26 / 9)
  • ADX (period 14)

Timeframes

15m1h4h
1h4h1d

Bias

Long only

Long only

Market fit

Range-bound

Filtered, selective

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.
  • MACD line crosses above signal AND
  • ADX(14) is above 20 β€” there's a real trend, not just chop.

Exit rules

  • Exit when close pushes back above the middle band.
  • Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
  • MACD line crosses below signal.
  • Hard 4% stop; 3% trailing stop locks in winners.

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.

Trades less frequently than vanilla MACD because the ADX gate sits open only in directional regimes. Equity curve is flatter through chop and adds when a sustained trend kicks in.

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 MACD trend with ADX strength filter strategy

  • You expect filtered, selective β€” the thesis is "Take MACD long crossovers only when ADX confirms a trend actually exists."
  • You want a long-only bot on 1h–1d candles with a balanced rule-set.
  • You're comfortable monitoring 2 indicators (MACD (12 / 26 / 9), ADX (period 14)).

Take MACD long crossovers only when ADX confirms a trend actually exists.

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†’

MACD trend with ADX strength filter strategy

Take MACD long crossovers only when ADX confirms a trend actually exists.

Try MACD trend with ADX strength filter strategy in dashboard β†’Read full breakdown β†’

Related comparisons

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