Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)

Analysis of the Bollinger Band Mean Regression Trading Strategy

Authors
Guanru Su1, *
1Department of Business, Shandong University, Jinan, 264209, Shandong, China
*Corresponding author. Email: su0712@mail.sdu.edu.cn
Corresponding Author
Guanru Su
Available Online 26 September 2023.
DOI
10.2991/978-94-6463-246-0_11How to use a DOI?
Keywords
Stock; Bollinger Band; Back Test; Mean Regression
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.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
26 September 2023
ISBN
978-94-6463-246-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-246-0_11How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Guanru Su
PY  - 2023
DA  - 2023/09/26
TI  - Analysis of the Bollinger Band Mean Regression Trading Strategy
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 95
EP  - 102
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_11
DO  - 10.2991/978-94-6463-246-0_11
ID  - Su2023
ER  -