Strategy 1: Bollinger Bands + Stochastic Oscillator

This strategy combines Bollinger Bands with the Stochastic %K oscillator to capture short-term mean reversion in volatile equity markets.

Signal Logic: Entry occurs when the close price crosses below the lower Bollinger Band (20 SMA, 2 std dev) and the Stochastic %K (14-period) crosses above 20. This pairing identifies oversold conditions with momentum confirmation to reduce whipsaws.

Weights: Equal weighting across active signals to avoid skew from price levels or volatility outliers.

Exit: 30-day max hold, 30% take-profit, 12% stop-loss.

Why it works: Bollinger Bands capture statistical extremes, while Stochastic ensures a directional reversal is underway. This approach targets short-term inefficiencies in liquid equities.

Performance (2015–2024)
Cumulative Return: 99.95%
Sharpe Ratio: 0.58
Max Drawdown: 28.17%

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