Why Bollinger Bands %B Trading Strategy is actually BAD after 100 TRADES?

Does the Bollinger Bands Percent B Trading Strategy work in the Forex and Stock Market? I tested it 100 times to find its win rate, and here’s what happened.

“Keep trading simple!” You have probably heard that somewhere before. Even though keeping trading simple can avoid unnecessary confusion, not all simple things are always useful. As we saw in the Bollinger Bands Percent B strategy video, Percent B is more like a simpler version of Bollinger Bands. But when I tested that trading strategy 100 times, it made money, and the profit line made a higher swing high at the beginning, but after around the 20th trade, the profit line went in the sideways direction for a while. It gave some good entry signals in a row at the start of an uptrend, but in that same uptrend, especially near the end of the trend, it also gave multiple false signals in a row. Now obviously, near the end of the trend, most trading strategies will give false signals. But in comparison to some other strategies we have tested recently, the Bollinger Bands Percent B gave more false signals in a row.

The Williams Percent Range Trading Strategy we tested 100 times, gave 7 signals near the end of the same uptrend, out of which 5 trades were won and only 2 trades were lost. On the other hand, the Bollinger Bands Percent B strategy also gave 7 signals in the same uptrend, but only won a single trade, and lost 6 trades in a row. You see, in the Bollinger Bands Percent Range Trading Strategy, traders buy when the price breaks above the upper Bollinger Band in the uptrend, but because of this same entry condition, when the trend was coming to an end, many Bollinger Bands long signals, were almost at the top of the trend. In simple words, the entry conditions that were used to identify the increasing buying pressure in the uptrend were the reason for many late false signals when the trend was reversing or slowing down. In an uptrend, strategies that give signals near the end of the pullback, and not near the swing high, perform better in conditions like these.

The Bollinger Bands Percent B Strategy where the signals are taken at the breakout of 100 and zero, was not one of them. With a 1.5 to 1 reward risk ratio, it got a win rate of approximately 38 percent, which is one of the worse win rates we have seen so far. The initial account size was 10000, but it only lost 500 even after 100 trades. So it was not as bad as the Bollinger Bands with RSI Trading Strategy, where the profit graph was consistently going in the downward direction.

3.8+7.5+3.8+0+3.8

The Bollinger Bands Percent B Trading Strategy gets a TR Score of 18.9 out of 50 and ranks 36th from the top, and 5th from the bottom, below the first Fractal strategy, and above the CCI Trading Strategy.