Strategies / Breakout / Bollinger Band Breakout Reversal

Bollinger Band Breakout Reversal

The idea buys when the close moves above the upper Bollinger Band and sells short when it moves below the lower band. A close beyond the opposite band reverses the position, with a 0.5 percent stop and no target.

BreakoutLong & shortIntradayUSD/JPY30 min

n/aProfit factor

489,900Net profit USD

35.84%Win rate

4,768Trades

-227,640Max drawdown

103Avg trade

Best run of 6. USD/JPY, 30 min, spread 1, from run sweeps:2026-10-04-USDJPY-30m-opt.tsv:82.

Entry rules, long

Buys 1 contract at market when no long position is open, with a 0.5 percent stop loss

Entry rules, short

Sells 1 contract short at market when no short position is open, with a 0.5 percent stop loss

Exit rules

A close above the upper band while short reverses the position into a long
The 0.5 percent stop loss closes the trade

Test conditions

Period	Up to 2026-10-04
Instrument	USD/JPY, 30 minutes
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	30 min	n/a	4,768	35.84	489,900 USD	-227,640
USD/JPY	Daily	n/a	608	11.68	1,481,160 USD	-716,830
USD/JPY	1 hour	n/a	3,526	34.80	635,090 USD	-315,870
Silver	4 hours	n/a	1,666	9.54	35,333 USD	-12,501
Nikkei 225	Daily	n/a	633	7.90	33,074 USD	-12,670
Gold	Daily	n/a	923	5.53	1,094 EUR	-990

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Bollinger Band Breakout Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[20](close)
dev = 2.0 * STD[20](close)
upper = basis + dev
lower = basis - dev

14 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Bollinger Bands

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Bollinger Band Breakout Reversal in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 6 market and timeframe combinations. The best run by trade count was USD/JPY, 30 minutes, with 4,768 trades.

How large was the drawdown?

The best run had a maximum drawdown of 227,640 USD at the tested position size, against a net result of 489,900 USD.

Does it trade long, short or both?

It trades both long and short.

Bollinger Band Reversion To Basis

Uses the same indicator.

2.33 PF · 4,691 trades

Trend Surfer

Best run on the same market, USD/JPY.

1.04 PF · 10,813 trades

Big Candle Breakout

Also a breakout strategy.

n/a PF · 4,636 trades

See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs