Join waitlist
The books... not free though
10 Strategier Som Slår BörsenSvenska10 Strategier Som Slår Börsen10 Strategies That Beat the MarketEnglish10 Strategies That Beat the MarketProRealTime Coding Made SimpleEnglishProRealTime Coding Made Simple
600+StatisticsMarket statistics and edges1,327StrategiesBacktested strategy library18Research papersThe study behind the algos301DocsProBuilder coding reference27Algo development programCourses and lessons24Everything here feeds the 24 algosSee the algos
Strategies / Mean reversion / Bollinger Band Fade with Fixed Stops

Bollinger Band Fade with Fixed Stops

The system fades moves outside the Bollinger Bands, buying when price closes at or below the lower band and shorting at or above the upper band. Each trade has a fixed profit target and stop measured from the signal bar close.

Mean reversionLong & shortSwingSilver1 hour
2.15Profit factor
526,971Net profit USD
45.23%Win rate
4,561Trades
-61,863Max drawdown
116Avg trade

Best run of 5. Silver, 1 hour, spread 2, from run pf:2026-10-13-SILVER-1h.tsv:2.

Entry rules, long

  1. After bar 20, the close is at or below the lower Bollinger Band (20 periods, 2 standard deviations).

Entry rules, short

  1. After bar 20, the close is at or above the upper Bollinger Band (20 periods, 2 standard deviations).

Exit rules

  2. A long also closes if the close falls to 1 percent below the signal close.
  3. A short closes if the close reaches 5 percent below the signal close or the lower band, or rises 1 percent above it.

Test conditions

PeriodUp to 2026-10-13
InstrumentSilver, 1 hour
Spread2 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 tested2026-10-13

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run1 hour2.15 4,56145.23526,971 USD-61,863
EUR/USD30 minn/a 4,60061.3343,606 USD-30,189
Dow Jones4 hoursn/a 38846.9126,521 EUR-8,723
Dow Jones1 hourn/a 1,29957.8117,046 EUR-10,607
FTSE 100Dailyn/a 58130.814,837 EUR-2,823

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Bollinger Band Fade with Fixed Stops
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE sl = 0
ONCE tp = 0

mid = Average[20](close)
sd = STD[20](close)
up = mid + 2 * sd
dn = mid - 2 * sd

23 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
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Bollinger Band Fade with Fixed Stops 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 5 market and timeframe combinations. The best run was Silver, 1 hour, with a profit factor of 2.15 over 4,561 trades.

How large was the drawdown?

The best run had a maximum drawdown of 61,862 USD at the tested position size, against a net result of 526,971 USD.

Does it trade long, short or both?

It trades both long and short.

Related

Strategies like this one

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 trades

Channel Lower Quarter Reversion

Also a mean reversion strategy.

2.17 PF · 125 trades

Want strategies that are already part of a live portfolio? Join the ProRealAlgos waitlist.

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.comStatsDocs