Bollinger Band Mean Reversion

 Reversal Detection via Standard Deviation Envelopes
This strategy is built upon the classic Bollinger Band framework and seeks to detect mean reversion opportunities after price touches or crosses outside the upper or lower band. Instead of trading the breakout, this bot anticipates a return toward the mean, using price confirmation as an entry trigger.

 How It Works:
Bollinger Bands are constructed using:

Basis: Simple Moving Average (SMA) of closing price over a specified length (default: 20)

Deviation: Standard deviation scaled by a user-defined multiplier (default: 2.0)

Upper Band = Basis + Deviation

Lower Band = Basis – Deviation

 Entry Logic:
Long Entry:
When the previous candle closes above the upper band, and the current candle closes back below it. This signals a potential overbought reversal.

 Short Entry:

When the previous candle closes below the lower band, and the current candle closes back above it. This may indicate oversold exhaustion.  

Strategy Features:

Mean Reversion Focused: Trades only after price pierces and rejects the outer bands.  Flexible Pyramiding: Allows up to 20 concurrent entries, ideal for layered scaling strategies.  Realistic Fee Setting: Default commission of 0.05% simulates realistic exchange conditions.   

Best Use Cases:

Ideal for range-bound environments or assets with clear oscillatory behavior. Can be tested on 1h, 4h, or daily timeframes for both crypto and traditional assets.  

Final Notes:

Bollinger Band-based reversals can be highly effective during sideways markets but may produce false signals in strong trends. Consider combining with trend filters for enhanced robustness.  Note: Different assets may require specific parameter adjustments. Users are responsible for optimizing the strategy settings for the asset they trade. Please ensure you fine-tune the parameters according to your trading pair.