Bollinger band reversion strategyvsVFI Volume Flow strategy
Bollinger band reversion strategy: Fade a 2-sigma stretch below the mean and exit when price tags the middle band. Β· VFI Volume Flow strategy: Long when smart-money flow turns positive and crosses up; short on the mirrored signal.
Bollinger band reversion strategy
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
VFI Volume Flow strategy
Long when smart-money flow turns positive and crosses up; short on the mirrored signal.
Indicators
- Bollinger Bands (period 20, Ο Γ 2)
- VFI (length 130, signal EMA 5)
Timeframes
Bias
Long only
Long & short
Market fit
Range-bound
Volume-led participation
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 when VFI crosses up through its signal line AND VFI is above zero (confirmed accumulation).
- Short on the mirrored down-cross below zero.
Exit rules
- Exit when close pushes back above the middle band.
- Hard 3% stop-loss; 2% trailing stop locks in any reversion gain.
- Opposite VFI/signal crossover closes 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.
Slow oscillator β fewer trades than a price-based crossover, but each one is volume-confirmed. Equity curve is patient: long quiet stretches punctuated by participation surges.
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 VFI Volume Flow strategy
- You expect volume-led participation β the thesis is "Long when smart-money flow turns positive and crosses up; short on the mirrored signal."
- You want a long & short bot on 1hβ1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (VFI (length 130, signal EMA 5)).
Long when smart-money flow turns positive and crosses up; short on the mirrored signal.
Bollinger band reversion strategy
Fade a 2-sigma stretch below the mean and exit when price tags the middle band.
VFI Volume Flow strategy
Long when smart-money flow turns positive and crosses up; short on the mirrored signal.
Related comparisons
Other pairings that involve one of these strategies.
Want to look at a different match-up?
Try another comparison β