Bollinger Bands serve as a technical analysis tool that aids in identifying relatively high and low price levels, allowing you to potentially enter trades at lower prices and exit at higher ones.
This indicator is comprised of three lines: the central line represents a simple moving average, while the other two lines are situated equidistantly above and below it. The distance between these lines is determined by standard deviation, reflecting the variation in price from its average value over a specified time frame. Greater distances between the upper and lower bands signify increased price volatility.
In order to employ the Bollinger Bands TA strategy with Gunbot, configure the percentage from the lower band for buying and the percentage from the upper band for selling. Orders are executed after the price surpasses the established level and subsequently retreats within range. Keep in mind that Bollinger Bands are merely one of many tools available for market analysis; ensure you fully grasp their functionality before relying on them for trading decisions.
This section delineates how futures trading functions using the bbta method. Trade triggers differ marginally from those applied in spot trading.
Gunbot initiates a single position, either long or short, and terminates it when the objective has been achieved. If the stop is activated prior to realizing a profitable trade closure, Gunbot will establish a stop order at a loss. Once a position has been closed, Gunbot will endeavor to open a new long or short position.
Long Entry Conditions
A long position is initiated when the ask price surpasses LOW_BB. In the example provided, LOW_BB would be assigned a value of 0, corresponding to the actual lower Bollinger Band. By modifying values, you can establish targets above (positive value) or below (negative value) the lower band.
Short Entry Conditions
A short position is triggered when the bid price dips beneath HIGH_BB. In the provided example, HIGH_BB would be assigned a value of 0, corresponding to the actual upper Bollinger Band. By adjusting values, you can establish targets below (positive value) or above (negative value) the upper band.
A position is closed upon achieving the desired ROE (return on equity). This percentage is calculated from the entry point, factoring in leverage.
A position is terminated at a loss when the negative ROE attains the STOP_LIMIT target.