Traderherz-Analytics

Trading Idea - #SP500 #BoumidiBands

Education
SP:SPX   S&P 500 Index
Hello everybody,

since I pay a lot of attention to statistical values in trading, I took a closer look at the #BoumidiBands (BB_SPX).

The BBs are derived from the implied volatility of the futures markets. The upper and lower bands of the indicator give us the range with the highest probability in which the market can move.

If the market breaks out of the BBs, it is expected to return into the bands. At least that is my interpretation.

I applied the BBs to the SP500 index and took a closer look on Tradingview. I looked at the data from February 2021 to today.

My backtesting criteria: on a breakout above the upper band I would open a SHORT trade and on a slide below the lower band, I would open a LONG trade.

The result is fantastic, without defining SL and TP here. In total, my backtesting resulted in 19 winning trades against 7 losing trades.

Check out my chart where I marked the market entries.
green thumbs up = winning trade
red thumb down = losing trade

Have fun with it.

I would be happy if you leave me some feedback.

Regards
Traderherz