Bollinger band reversion strategyvsSMC CHoCH + FVG entries strategy
Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· SMC CHoCH + FVG entries strategy: Market Structure says which way, the first Fair Value Gap in that direction says go now.
Bollinger band reversion strategy
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
SMC CHoCH + FVG entries strategy
Market Structure says which way, the first Fair Value Gap in that direction says go now.
Indicators
- Bollinger Bands (period 20, Ο Γ 2)
- Market Structure (swing 20)
- Fair Value Gap (min gap 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.
- Long on a bullish FVG while market structure is in a +1 (bullish) regime.
- Short on a bearish FVG while market structure is in a -1 (bearish) regime.
Exit rules
- Exit when close pushes back above the middle band.
- Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
- Regime flip through zero in either direction closes the trade.
- 5% trailing stop, 5-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.
Picky β both legs must agree. Long flat stretches followed by clusters of trades when a regime turns and FVGs print along the way. Stacks well in directional markets, sits out balanced ranges.
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 SMC CHoCH + FVG entries strategy
- You expect range-bound β the thesis is "Market Structure says which way, the first Fair Value Gap in that direction says go now."
- You want a long & short bot on 15mβ4h candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (Market Structure (swing 20), Fair Value Gap (min gap 0.1%)).
Market Structure says which way, the first Fair Value Gap in that direction says go now.
Bollinger band reversion strategy
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
SMC CHoCH + FVG entries strategy
Market Structure says which way, the first Fair Value Gap in that direction says go now.
Related comparisons
Other pairings that involve one of these strategies.
Want to look at a different match-up?
Try another comparison β