The Bollinger Band Breakout System
The aims of this chapter are–
- Description of system. To describe in detail a simple and effective long-term system to trade Exchange Traded Funds.
- Performance comparison. To compare the performance of the system on various portfolios with that of the buy-and-hold benchmark.
- Diversification. To explore the benefits or otherwise of adding commodities and short-term debt instruments to a portfolio of equities.
- Trading short. To look at the possibility of using the system to benefit from bear markets by taking short trades.
Description of the system
Origins of the system
This system was described by Chuck Le Beau and David Lucas in their book Technical Traders Guide to Computer Analysis of the ...