Bollinger Bands

The Bollinger Bands strategy shines in backtests but fails in live trading. Research shows it achieves 58%-65% win rate in ranging markets but only 33% in bull trends with -28% max drawdown. The problem lies in BB’s mean reversion assumption, but BTC trends can last for months. Adding ADX and bandwidth percentile for market state detection significantly improves strategy performance.

The market divides into three regimes: trending, ranging, and high volatility. A single strategy can only be profitable in one regime. This article proposes Regime-Based Strategy Routing, combining trend following, BB Squeeze, MACD Divergence, and mean reversion strategies, automatically switching based on market regime and adjusting position size based on multi-strategy confirmation as a confidence分级.