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Strategies / Mean reversion / Bollinger Band Crossover Reversal

Bollinger Band Crossover Reversal

It sells short when the close crosses over the lower Bollinger Band and buys when it crosses under the upper band (51 periods, 3.01 standard deviations). Each trade has a 14.2% profit target and a 99% stop loss, and an opposite signal reverses it.

Mean reversionLong & shortSwingGold4 hours
2.06Profit factor
3,575Net profit EUR
44.55%Win rate
110Trades
-683Max drawdown
32.50Avg trade

Best run of 19. Gold, 4 hours, spread 0.6, from run pf:2026-10-12-GOLD-4h.tsv:7.

Entry rules, long

  1. The close crosses under the upper Bollinger Band (51 periods, 3.01 standard deviations).

Entry rules, short

  1. The close crosses over the lower Bollinger Band (51 periods, 3.01 standard deviations).

Exit rules

  1. A profit target at 14.2% from the entry price.
  2. A stop loss at 99% from the entry price.

Test conditions

PeriodUp to 2026-10-12
InstrumentGold, 4 hours
Spread0.6 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
GoldBest run4 hours2.06 11044.553,575 EUR-683
Gold2 min1.29 69239.882,677 EUR-554
USD/JPYDailyn/a 3953.852,745,460 USD-528,850
USD/JPY15 minn/a 86340.44560,660 USD-278,130
USD/JPY10 minn/a 85840.68246,790 USD-204,430
USD/JPY5 minn/a 81739.53205,220 USD-166,840
EUR/USDDailyn/a 4055.00116,408 USD-45,590
Silver1 hourn/a 58138.0440,975 USD-18,616
Silver2 minn/a 71739.6139,205 USD-16,047
GBP/USDDailyn/a 4353.4922,806 USD-10,040
Silver1 minn/a 61440.0713,742 USD-12,746
US Crude Oil1 hourn/a 34546.0911,445 EUR-10,513
DAX 4015 minn/a 93939.949,600 EUR-9,229
US Crude Oil3 minn/a 75041.338,251 EUR-2,711
Nasdaq 10010 minn/a 96241.068,118 EUR-5,632
DAX 4010 minn/a 88240.367,231 EUR-5,072
Brent Crude4 hoursn/a 6851.476,043 EUR-4,862
Gold3 minn/a 75340.242,842 EUR-719
GBP/USD10 minn/a 84541.662,546 USD-2,186

Charts

Results by run

Top 10 of 19 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Bollinger Band Crossover Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

base = Average[51](close)
dev = 3.01 * STD[51](close)
upper = base + dev
lower = base - dev

17 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. 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".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Bollinger BandsSMAStandard Deviation
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Bollinger Band Crossover 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 19 market and timeframe combinations. The best run was Gold, 4 hours, with a profit factor of 2.06 over 110 trades.

How large was the drawdown?

The best run had a maximum drawdown of 683 EUR at the tested position size, against a net result of 3,575 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

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CCI Breakout

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Seasonal RSI Dip Buying

Also a mean reversion strategy.

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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.comStatsDocs