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Bollinger band reversion strategyvsOrder Block strategy

Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· Order Block strategy: Retest of the last opposite candle before a Break of Structure β€” long bullish OBs, short bearish.

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 & short

Order Block strategy

Retest of the last opposite candle before a Break of Structure β€” long bullish OBs, short bearish.

Indicators

  • Bollinger Bands (period 20, Οƒ Γ— 2)
  • Order Block (swing length 10)

Timeframes

15m1h4h
15m1h4h1d

Bias

Long only

Long & short

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.
  • Long on a bullish OB retest (bull_retest > 0).
  • Short on a bearish OB retest.

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 when the OB is mitigated (price closes through the opposite edge).
  • An opposite-side OB retest also invalidates the trade.
  • 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.

Selective β€” OBs are sparse and retests are rarer still. The strategy spends most of the time flat and produces concentrated trades around real structure flips.

Complexity

1 ind Β· 2 entry Β· 2 exitSimpler
1 ind Β· 2 entry Β· 3 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 Order Block strategy

  • You expect strong directional trends β€” the thesis is "Retest of the last opposite candle before a Break of Structure β€” long bullish OBs, short bearish."
  • You want a long & short bot on 15m–1d candles with a balanced rule-set.
  • You're comfortable monitoring 1 indicator (Order Block (swing length 10)).

Retest of the last opposite candle before a Break of Structure β€” long bullish OBs, short bearish.

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†’

Order Block strategy

Retest of the last opposite candle before a Break of Structure β€” long bullish OBs, short bearish.

Try Order Block strategy in dashboard β†’Read full breakdown β†’

Related comparisons

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