Strategies / Mean reversion / Bollinger Band Reentry

Bollinger Band Reentry

Buys when the close crosses back above the lower Bollinger Band (20 periods, 2 standard deviations) and sells short when it crosses back below the upper band. Each trade has a 0.58% stop loss and a 0.96% take profit.

Mean reversionLong & shortSwingEUR/USD1 hour

n/aProfit factor

45,873Net profit USD

54.82%Win rate

7,039Trades

-30,685Max drawdown

6.52Avg trade

Best run of 3. EUR/USD, 1 hour, spread 1, from run sweeps:2026-10-07-EURUSD-1h-opt.tsv:3.

Entry rules, long

Only when no long position is open.

Entry rules, short

Only when no short position is open.

Exit rules

A stop loss sits 0.58% from the entry price, for longs and shorts.
A take profit sits 0.96% from the entry price, for longs and shorts.

Test conditions

Period	Up to 2026-10-07
Instrument	EUR/USD, 1 hour
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	2026-10-07

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
EUR/USDBest run	1 hour	n/a	7,039	54.82	45,873 USD	-30,685
DAX 40	4 hours	n/a	1,748	40.56	9,120 EUR	-2,415
Nasdaq 100	Daily	n/a	678	27.73	2,269 EUR	-1,194

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

basis = Average[20](close)
dev = 2 * STD[20](close)
upper = basis + dev
lower = basis - dev

17 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 BandsSMAStandard Deviation

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 30,685 USD is large next to the net profit of 45,873 USD.

Questions

About this strategy

Can I run Bollinger Band Reentry 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 3 market and timeframe combinations. The best run by trade count was EUR/USD, 1 hour, with 7,039 trades.

How large was the drawdown?

The best run had a maximum drawdown of 30,685 USD at the tested position size, against a net result of 45,873 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Slow MACD Slope

Best run on the same market, EUR/USD.

6.80 PF · 7,305 trades

ATR Band

Also a mean reversion strategy.

10.31 PF · 53 trades

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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.com Stats Docs