Skip to content
Vega Financial
Demo modePaper trading only
  • Dashboard
  • Strategies
  • Portfolio
  • Activity
  • Learn
  • Profile
DashboardStrategiesPortfolioProfile
Back to strategies
  1. Strategies
  2. Bollinger Reversion
VerifiedDemoEquityMean ReversionMedium risk

Bollinger Reversion

S
Sofia PatelVerified

MSc Financial Mathematics student at UCL, researching mean-reversion signals and tactical equity dislocations.

View developer profile

Mean-reversion strategy that looks for temporary price moves away from a normal range and positions for a move back.

Best fit

Users looking to diversify away from pure trend exposure.

Portfolio role

Diversifying tactical sleeve that can complement momentum strategies.

Works best in

Tends to do better when markets overshoot then settle back.

Main risk

Can struggle when strong trends continue longer than expected.

ReviewedDemo-readyMethodologyAdvanced analytics
+134.81%-19.85% biggest drop6 years track record

Simulate allocation

See how this changes your demo portfolio.

£

Minimum £1. Available cash: £0.00

You have no available cash to buy. Reset the demo in Settings to restore starting cash.

Current holding: £0.00

Compare strategies

Demo only. No real money invested.

Simulated metrics for comparison. Not a forecast of future results.

Return

Total change in value over the tested period (simulated).

+134.81%

Biggest drop

Largest peak-to-trough fall before recovering. Learn more →

-19.85%

Risk-adjusted return

Return per unit of risk over the tested period. Learn more →

1.13

Track record

Length of history used to produce these results.

6 years

Confidence

Based on how much history is available for this strategy.

High

This strategy can behave differently from trend-following approaches. It may suit investors looking to diversify their paper portfolio.

What this strategy does

Bollinger Reversion is a mean-reversion strategy that looks for temporary price moves away from a normal trading range and positions for a move back towards that range. It is intended to behave differently from pure momentum or trend-following approaches.

Why investors use it

Markets that overshoot then settle back into a stable range

Conditions where prices revert to a mean

Risks to know

  • •Can struggle in strong trending markets
  • •May underperform when prices do not revert quickly
  • •Returns can be uneven over shorter periods

When it tends to work vs struggle

Tends to work in

  • Markets that overshoot then settle
  • Conditions where prices revert to a mean

Tends to struggle in

  • Strong trends that continue longer than expected
  • Prices that do not revert quickly

Who it may suit: May suit investors looking to diversify away from pure trend exposure and comfortable with medium risk.