OPEN-SOURCE SCRIPT
Aberration Trend Following Strategy
Aberration Trend-Following Strategy
A legendary long-term trend-following system originally developed by Keith Fitschen in 1986, designed to capture major market trends using Bollinger Bands and volatility filtering.
🔹 STRATEGY OVERVIEW
This mechanical system identifies trend reversals by detecting price breakouts beyond Bollinger Bands, while filtering trades based on market volatility conditions.
🔹 ENTRY SIGNALS
- Long Entry: Price closes above the upper Bollinger Band + volatility conditions met
- Short Entry: Price closes below the lower Bollinger Band + volatility conditions met
🔹 EXIT SIGNALS
- Exit positions when price returns to the middle band (20-period SMA)
🔹 VOLATILITY FILTER
- Only trades when ATR is within acceptable range vs. historical median volatility
- Avoids trading in extremely low or excessively high volatility environments
- Helps reduce false signals during choppy, range-bound markets
🔹 KEY PARAMETERS
- Bollinger Band Period: 20 (customizable)
- Bollinger Band Multiplier: 2.0 (customizable)
- ATR Length: 20
- Volatility Lookback: 50 periods
- Volatility Range: 0.80 to 2.00 of median
🔹 STRATEGY CHARACTERISTICS
- Timeframe: Long-term (holds positions for extended periods)
- Trade Frequency: 3-4 trades per market annually
- Philosophy: Cut losses short, let profits run
- Best suited for: Trending markets across commodities, futures, and indices
⚠️ RISK DISCLAIMER
This strategy is for educational purposes only. Past performance does not guarantee future results. Always perform your own backtesting and risk assessment before live trading.
📊 VISUALIZATION
- Blue lines: Upper and lower Bollinger Bands
- Orange line: Middle band (basis/SMA)
- Green triangles: Long entry signals
- Red triangles: Short entry signals
- Yellow crosses: Exit signals
A legendary long-term trend-following system originally developed by Keith Fitschen in 1986, designed to capture major market trends using Bollinger Bands and volatility filtering.
🔹 STRATEGY OVERVIEW
This mechanical system identifies trend reversals by detecting price breakouts beyond Bollinger Bands, while filtering trades based on market volatility conditions.
🔹 ENTRY SIGNALS
- Long Entry: Price closes above the upper Bollinger Band + volatility conditions met
- Short Entry: Price closes below the lower Bollinger Band + volatility conditions met
🔹 EXIT SIGNALS
- Exit positions when price returns to the middle band (20-period SMA)
🔹 VOLATILITY FILTER
- Only trades when ATR is within acceptable range vs. historical median volatility
- Avoids trading in extremely low or excessively high volatility environments
- Helps reduce false signals during choppy, range-bound markets
🔹 KEY PARAMETERS
- Bollinger Band Period: 20 (customizable)
- Bollinger Band Multiplier: 2.0 (customizable)
- ATR Length: 20
- Volatility Lookback: 50 periods
- Volatility Range: 0.80 to 2.00 of median
🔹 STRATEGY CHARACTERISTICS
- Timeframe: Long-term (holds positions for extended periods)
- Trade Frequency: 3-4 trades per market annually
- Philosophy: Cut losses short, let profits run
- Best suited for: Trending markets across commodities, futures, and indices
⚠️ RISK DISCLAIMER
This strategy is for educational purposes only. Past performance does not guarantee future results. Always perform your own backtesting and risk assessment before live trading.
📊 VISUALIZATION
- Blue lines: Upper and lower Bollinger Bands
- Orange line: Middle band (basis/SMA)
- Green triangles: Long entry signals
- Red triangles: Short entry signals
- Yellow crosses: Exit signals
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.