Bollinger Reversion
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.
Simulate allocation
See how this changes your demo portfolio.
Minimum £1. Available cash: £0.00
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Current holding: £0.00
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.