Analysis of the Bollinger Band Mean Regression Trading Strategy

Guanru Su ()
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Guanru Su: Shandong University, Department of Business

A chapter in Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023), 2024, pp 95-102 from Springer

Abstract: Abstract Stocks have become an indispensable part of people’s lives. There are many trading strategies used in trading and investment, among which Bollinger band mean regression trading strategy is a popular one. This article focuses on using this strategy to analyze several leading stocks and partially test them. After analyzing the stock, Bollinger band mean regression trading method is adopted. Ultimately, sharp short-term price movements and potential entry and exit points are identified. Finally, it is concluded that this strategy is flexible and visually intuitive, and they are easy to explain visually. It can be applied to any underlying asset in any time frame indicator, generating signals that not only provide precise entry levels, but also specify stop losses and profit zones. But such a strategy would react to changes in price movements without predicting them. It can therefore be a useful tool for technical analysis. The result could allow traders to make better informed decisions about when to enter and exit by carefully evaluating and adjusting their strategies.

Keywords: Stock; Bollinger Band; Back Test; Mean Regression (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-246-0_11

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DOI: 10.2991/978-94-6463-246-0_11

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