High Win Rate Mean Reversion Strategy for Gold

dün

Strategy Breakdown:
Bollinger Bands:

We enter long trades when the price touches or crosses the lower Bollinger Band (indicating potential oversold conditions).
We enter short trades when the price touches or crosses the upper Bollinger Band (indicating potential overbought conditions).
RSI Filter:

For long trades, the RSI must be below 30 (indicating oversold conditions).
For short trades, the RSI must be above 70 (indicating overbought conditions).
ATR-Based Stop Loss and Take Profit:

The stop loss is set to 1x ATR, keeping it tight to avoid large drawdowns.
The take profit is set at 0.5x the stop loss to ensure a higher win rate.
Risk Per Trade:

The strategy risks 5% of the account on each trade.
Why This Strategy Can Achieve a High Win Rate:
Mean Reversion Focus: Bollinger Bands and RSI are excellent indicators for detecting when price movements are likely to reverse, especially in sideways or range-bound markets, where mean reversion strategies typically excel.
Lower RRR (0.5:1): By targeting a lower risk-reward ratio (i.e., taking smaller profits relative to the stop loss), we increase the likelihood of winning trades. This is a common trade-off for higher win rates.