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Bollinger band breakout

Breaking above the upper band (average plus a multiple of volatility) signals a strong move up.

Parameters 2 Assets tested 5 Costs 0.5% Optimized Sharpe · 120

The rules

Those numbers are the values optimized for Bitcoin. They differ per asset — the table below lists each.

There are 2 tunable values: n, k. Fewer knobs make it harder to fit noise, so a count this low keeps overfitting risk relatively contained.

Results by asset

The same strategy across 5 very different assets, each over its full history, with parameters optimized per asset. It beat buy and hold on 3 of 5.

Asset · parameters CAGRHold CAGR Max drawdownHold DD SharpeTradesTime in market
Bitcoin
n=36, k=1.4
84.6% 41.2%-36.6%-86.8% 1.746242%
Ethereum
n=38, k=1.2
94.8% 27.1%-48.6%-95.6% 1.567141%
XRP (Ripple)
n=11, k=2.2
114.0% 25.7%-42.2%-95.9% 1.3813222%
Samsung Electronics
n=45, k=1.4
7.3% 14.2%-44.4%-64.8% 0.4216442%
Apple (AAPL)
n=38, k=1.5
16.4% 18.8%-64.8%-82.2% 0.7230145%
1x 10x 100x 2018 2020 2022 2024 2026 Bollinger band breakoutBuy & hold
Bitcoin 2017-09-25–2026-07-30 · Bollinger band breakout (solid) vs buy and hold (dashed). Log scale.
These are in-sample figures. The same data chose the parameters and scored them, so they sit above what live trading would return. Use them to rank strategies against each other, not as a return target. See optimization and overfitting.

When this one works

Bollinger band breakout belongs to the trend-following family. All of them earn in sustained directional moves and bleed costs in range-bound markets. The trade count and time in market columns above show how each variant leans.

Run this strategyCompare the others

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