This strategy copy the Nick Radge's trading ideas for a profitable systems. He mentions a Bollinger Band idea which is also published in his book Unholy Grails. Nick says:
he strategy that we did test and showed very promising results was an entry using a Bollinger band and an exit using the opposite Bollinger band, but we use 3 standard deviations for the entry and 1 standard deviation for the exit, just to keep the trailing stop a little bit tighter.”
Entry: Buy on the Open the day after a stock closes above the top Bollinger Band Exit: Exit on the Open the day after a stock closes below the lower Bollinger Band
Results tested on Nasdaq market are very good and better than simply buy& hold
Great post. but is it really better than buy & hold though? Looking at this chart of AMD here, buy & hold is outperforming the strategy over long term? Looking at other Nasdaq constituents, buy & hold is outperforming the majority of them too