Bollinger Bands in crypto: buying altcoins below the lower band
Buy an altcoin that has dropped sharply below its usual price range while its long trend is still up, and sell on the bounce.
The rule
Draw a band around the 20-day average price, two standard deviations wide. A close below the lower band in an uptrend is the entry. A close back above the 20-day average is the exit.
Why people use it
In an uptrend sharp drops are often overreactions that are bought back within days. The rule is in the market rarely and for a short time.
Where it hurts
Sometimes the drop is the start of a collapse, and the rule has no stop. Gains per trade are small, so one bad trade wipes out several good ones.
How our bot runs it
The bot watches the ten largest altcoins. It buys a coin that closes below its lower band (20 days, 2 deviations) while above its 200-day average, and sells when the coin closes above its 20-day average. Up to five positions of 20% each.
Live account
A virtual $100,000 account that follows this rule. Every trade is on the bot's page.
| Bot | Account | Return |
|---|---|---|
| Altcoins below the Bollinger band | $100,000 | +0.00% |