Dynamic callibration of Bollinger Bands

[Jeskaa]

Hello everyone,

This is my first post on this forum, so I apologize if it's unconventional .

I'm currently trying out a strategy which uses Bollinger Bands as an indicator for an oversold stock and I'm wondering whether I should adjust my Bands each day or leave them as they were at inception of the trade.

Example:

I am buying the stock if the price reaches the lower Bollinger Band with 2 standard deviations and a rolling window of 20 days.

I then set a stop-loss order if the price reaches another Bollinger Band, this time the 4 standard deviation one and same rolling window.

I set also a sell order to cash-in the profit as soon as the Price reaches the current Moving mean.

Should I adjust these orders each day to take into account the most recent information or should I let them remain as they were when I entered my trade?

Thanks in advance

 

[malaguti]

Hello everyone,

This is my first post on this forum, so I apologize if it's unconventional .

I'm currently trying out a strategy which uses Bollinger Bands as an indicator for an oversold stock and I'm wondering whether I should adjust my Bands each day or leave them as they were at inception of the trade.

Example:

I am buying the stock if the price reaches the lower Bollinger Band with 2 standard deviations and a rolling window of 20 days.

I then set a stop-loss order if the price reaches another Bollinger Band, this time the 4 standard deviation one and same rolling window.

I set also a sell order to cash-in the profit as soon as the Price reaches the current Moving mean.

Should I adjust these orders each day to take into account the most recent information or should I let them remain as they were when I entered my trade?

Thanks in advance

remain as they were surely. when you backtested this, and you realised it would be a stategy that would give you an edge, what did you do then..did you keep on adjusting it daily?

 

[Jeskaa]

In my backtests I closed my positions based on the current day standard deviation and moving average, not the one at inception.

Your reply made me realize that I should adjust daily as I did in my backtests. Is there a consensus regarding the closing times for a Bollinger Band strategy?

Thanks !

 

[malaguti]

In my backtests I closed my positions based on the current day standard deviation and moving average, not the one at inception.

Your reply made me realize that I should adjust daily as I did in my backtests. Is there a consensus regarding the closing times for a Bollinger Band strategy?

Thanks !

Odd, but then I certainly wont argue with a strategy. If that's what worked, and this is your edge you continue in my opinion. It doesn't actually matter mine or anyone else's opinion. Its yours, and thats whats important.
Good luck Jeskaa