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Bollinger band reversion strategyvsTrend Magic strategy

Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· Trend Magic strategy: CCI-gated ATR ratchet β€” long on a bullish wick break of the trail, short on the mirror.

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

Trend Magic strategy

CCI-gated ATR ratchet β€” long on a bullish wick break of the trail, short on the mirror.

Indicators

  • Bollinger Bands (period 20, Οƒ Γ— 2)
  • Trend Magic (period 20, ATR 5, coeff 1.0)
  • SMA(1) wick wrappers (low / high)

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 when the bar's low wick crosses up through the Trend Magic trail line.
  • Short when the high wick crosses down through the trail line.

Exit rules

  • Exit when close pushes back above the middle band.
  • Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
  • CCI regime flip through zero closes the active position.
  • 4% trailing stop, 2-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 entries β€” the wick-cross condition is strict, so trades fire only when momentum really pushes through. Strong in trending regimes, quiet during balanced ranges.

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 Trend Magic strategy

  • You expect strong directional trends β€” the thesis is "CCI-gated ATR ratchet β€” long on a bullish wick break of the trail, short on the mirror."
  • You want a long & short bot on 15m–1d candles with a balanced rule-set.
  • You're comfortable monitoring 2 indicators (Trend Magic (period 20, ATR 5, coeff 1.0), SMA(1) wick wrappers (low / high)).

CCI-gated ATR ratchet β€” long on a bullish wick break of the trail, short on the mirror.

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†’

Trend Magic strategy

CCI-gated ATR ratchet β€” long on a bullish wick break of the trail, short on the mirror.

Try Trend Magic strategy in dashboard β†’Read full breakdown β†’

Related comparisons

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