FINAXIONResearch
Finaxion Research · Bounce off the lower Bollinger band · single stocks · Recomputed 2026-09-10

Does Bounce off the lower Bollinger band work on EW?

Bounce off the lower Bollinger band does not beat buy-and-hold on EW: -10.0 points a year over 26 years.

Total return
524.2%
Buy and hold
×66
CAGR
7.2%
Sharpe
0.27
Max drawdown
-36.8%
Trades
204
Out of sample
partly
Years
26
1×10×90×2001200320052007200920112013201520172019202120232025
StrategyEW

Findings

  1. Bounce off the lower Bollinger band does not beat buy-and-hold on EW: -10.0 points a year over 26 years.
  2. Against the S&P 500 over the same window: -1.0 points a year.
  3. Total return +524.2% versus ×66 for buy-and-hold, with 204 trades.
  4. The result holds only partly out of sample.
  5. Maximum drawdown -36.8%.
  6. It beats in neither half of the history (split at 2013).
  7. It ranks #9 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 30497848a621.

Exactly what was tested

Close crosses back above the lower band (20, 2σ) after piercing it → entry. Close reaches the 20-day mean → exit.

How to read it

The verdict compares the strategy with buying and holding EW over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on EW → · Full page for Bounce off the lower Bollinger band →

How to cite

Finaxion Research (2026). Does Bounce off the lower Bollinger band work on EW?. Daily backtest 1962-01-01–2026-08-31, artifact 30497848a621. https://finaxion.app/en/research/bollinger-bounce/ew

Not a recommendation. Past performance does not guarantee future results.