Larry Connors’ %b Strategy (Bollinger Band) - Trading Strategies Explained

The higher the %b reading, the more likely that the market has moved higher. The lower the %b reading, the more likely the market’s trend has been lower. Traders ideally want o buy a low %b reading and sell higher %b readings.

We backtest the following trading rules:

* The close must be above the 200-day moving average.

* The %b must be below 0.2 for the last three (consecutive) days.

* If 1 and 2 are true, buy on the close.

* Exit when the %b closes above 0.8.

The results are very good in QQQ and SPY, but very few fills. The equity curve for QQQ is shown below.

How does the Larry Connors’ %b Strategy performs as a portfolio on all ETFs? let's check>>

https://www.quantifiedstrategies.com/larry-connors-b-strategy-bollinger-band/