Bollinger Trading for SHIB 5H Chart

Strategy Title: "Bollinger Trading for SHIB 5H Chart"

Make sure you select the 5H chart for SHIB as that is how this strategy is optimized.

Objective:
This strategy aims to capitalize on price movements of SHIB using Bollinger Bands to identify potential overbought and oversold conditions, with an additional volatility filter to enhance trade quality.

Key Components:

Bollinger Bands:
Length: Set to 15 periods by default, which means the moving average and standard deviation calculations are based on the last 15 price points. This shorter period is intended to react more quickly to price changes in the volatile SHIB market.
Basis MA Type: Uses Simple Moving Average (SMA) as the basis, providing a smoother, less reactive response to price changes compared to other moving average types.
Standard Deviation (StdDev): Set to 1.2, which determines the width of the Bollinger Bands. A lower value means tighter bands, potentially catching smaller price movements.
Offset: Set to 0, meaning no time shift is applied to the bands.
Volatility Filter:
Use Volatility Filter: Enabled by default. This filter assesses if the market is sufficiently volatile to warrant trading.
Bandwidth Multiplier: Determines how wide the bands need to be for a trade to be considered. A multiplier of 0.8 means the bands must be somewhat expanded for trading signals.
Bandwidth Smoothing: Uses an EMA with a 15-period length to smooth the bandwidth, reducing noise in the volatility measurement.

Trading Logic:

Entry Condition (Long):
A long position is entered when the closing price moves above the upper Bollinger Band, indicating a potential breakout or overbought condition.
This entry is only valid if:
The current time falls within the user-defined date range.
The market is deemed volatile enough by the volatility filter if it's enabled.
Exit Condition:
The long position is closed when the closing price drops below the lower Bollinger Band, suggesting that the price might be returning to mean or an oversold condition.

Strategy Characteristics:

Simplicity: This strategy focuses purely on price action relative to Bollinger Bands, without additional indicators like RSI, ADX, or MACD, making it straightforward to understand and backtest.
Volatility Adjustment: By filtering trades based on band width, the strategy attempts to avoid trading in low volatility scenarios where breakouts might be less meaningful.
Risk Management: The strategy uses a percentage of equity for trade sizing, which inherently adjusts risk based on account performance.

Considerations:

Market Specific: Tailored for SHIB or similar highly volatile assets, where short-term price swings are common.
Backtesting: Essential for assessing how these settings perform over different market conditions, especially given SHIB's volatility and potential for rapid price movements.
Adjustability: Users can tweak Bollinger Band parameters or the volatility filter to match different market conditions or risk preferences.

This strategy leverages the tendency of prices to revert to the mean after moving outside Bollinger Bands, aiming to profit from these reversion points while filtering out trades during less volatile market conditions.