Bollinger Bands

Anúncios Bollinger Bands

Bollinger Bands

2022-10-09 10:02:48 UTC 16235 Lido

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## 1. Brief introduction to Bollinger Bands 
A combination of Bollinger Bands and moving averages works like this: traders use Bollinger Bands to understand the market trend and consult the moving average to confirm the trend. When the price rises and breaks the upper track of the Bollinger Bands, it's time to go short. Conversely, when the price breaches the lower track, it indicates that it's time to go long.

#### Conditions to open positions
Conditions for opening a long position - the closing price touches the lower rail of the Bollinger Bands, and the short-term moving average is below the long-term moving average;
Conditions for opening a short position - the closing price touches the lower rail of the Bollinger Bands, and the short-term moving average is above the long-term moving average.

#### Conditions to close positions
Conditions for closing long positions - the closing price touches the upper rail of the Bollinger Band;
Conditions for closing short positions - the closing price touches the lower rail of the Bollinger Band.
## 2 How to use Bollinger Bands strategy in trading

Head to "Navigation Bar" - "Copy Trading" - "Create a Strategy" - "Futures CTA " - "Bollinger Bands" - then click "Create Strategy". In the pop-up window, select"Settlement Method", then "Trading Pair", and click "Configuration Parameters", then click "Create". As shown below:
![](https://gimg2.gateimg.com/image/article/16817978691.png)

#### How to backtest your strategy :
Click the "Backtest" button, fill in the parameters on the parameters configuration page, click "Backtest" at the bottom, and the system will automatically backtrack the performance data of the strategy (by default, the backtested period will be the past month). Select the "Bollinger Bands (perpetual future)", click "Create", fill in the corresponding parameters, and then click the "Create" button to create backtest data which can be checked in the "Backtest Record".
![](https://gimg2.gateimg.com/image/article/16817979002.png)
## 3 Configuration parameters explained
![](https://gimg2.gateimg.com/image/article/16817979153.png)

**Leverage multiple:** Set by users and is mainly used to calculate the number of orders placed.
**Total investment:** Refers to the total amount of user's investment, used as a margin for trading.
**Auto stop-loss ratio:** When the loss of the investment reaches this ratio, the strategy will liquidate positions and exit.
**Fast moving average:** MA parameters, required value, and must be an integer.
**Slow moving average: ** MA parameter, required value, and must be an integer.
**Bollinger Bands Period:** Required value, and must be an integer.
**Bollinger band deviation multiple:** Required value, and must be an integer.
**Period: **MA parameter. Required value that can be set as 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, 8 hours, 1 day. By default, it is set to 1 hour. 
**Number of orders placed:**  The number of orders placed after the ATR strategy is triggered. It is an optional value and is empty by default.
**Default handling fee:** 0.00075
**Inverse contract:**
s = (margin * latest price) / (2* 0.00075 + (1/leverage)) size = s / size of each contract
USDT contract:
s = (margin) / (2*0.00075 + (1/leverage)) * latest price size = s / size of each contract 
The actual number of orders placed will be lesser of the default order number or the number set by the user.

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