Introduction to the CTA-BOLL bot

1. What is BOLL?

The Bollinger Bands indicator (BOLL) is calculated using the mean and standard deviation in statistics. It consists of three bands: the upper, middle, and lower. The mean reversion trading bot based on BOLL assumes that prices typically oscillate within the range established by the upper and lower bands. Even though the price could go higher or lower for a short period, it always returns to the range in the long run. Therefore, buy or sell signals appear when the price goes above the upper band or below the lower band.

The BOLL band calculation:

Middle band (purple) = moving average in K days
Upper band (yellow) = middle band + N × standard deviation
Lower band (blue) = middle band - N × standard deviation

2. The BOLL mean reversion bot

The BOLL mean reversion bot is suitable for volatile markets. The bot assumes that the price bounces between the upper and lower BOLL bands. A price above the upper band is a sell signal. A price below the lower band is a buy signal.

We can configure the BOLL trading bots as follows:

The BOLL long bot (for oscillating downtrend markets): open long positions when the price is below the lower band and close short positions when the price is above the upper band.

The BOLL short bot (for oscillating uptrend markets): open short positions when the price is above the upper band and close long positions when the price is below the lower band.

3. The BOLL bots recommended by AI

K and N are the two decisive parameters of the BOLL indicator. The upper, middle, and lower bands depend on different parameter combinations, which will affect the timing of the bot signals. The success of a bot relies on the parameters, but it can be a complicated process. Therefore, we offer AI-BOLL bots, with parameters recommended by AI, to help users make better decisions.

The bots on the recommendation cards use parameters based on recent historical market data, each reflecting a different combination of candlestick chart cycles and parameters. Users are welcome to select the bots based on their expectations of the market.

4. Applicable scenarios of BOLL mean reversion bots

The BOLL mean reversion bots are only effective in volatile markets. In trending markets, the bot may incur losses due to incorrect opening and closing positions.

Therefore, when using a BOLL bot, it is important to pay attention to the current market conditions to avoid losses caused by persistent trend movements.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users should conduct their own research and invest at their own discretion. Bitget shall not be liable for any investment losses.