LBR Aberration Trend Following Strategy

Linda Bradford Raschke's Aberration Trend Following Strategy

Overview
This strategy implements a directional Bollinger Band breakout model with volatility normalization and trend alignment.

Instead of trading every band breakout, the system applies:

• Trend bias using EMA
• ATR-based volatility regime filtering
• Volatility-adjusted stop-loss placement
• Fixed risk-to-reward targeting

Core Logic:

[Bollinger Band Expansion:
Entries trigger when price breaks beyond the outer band during acceptable volatility conditions.

Trend Confirmation:
Long trades require price above the trend EMA.
Short trades require price below the trend EMA.

Volatility Filter:
ATR is compared against its rolling percentile median to avoid extremely low or extreme volatility environments.

Risk Management:
Stops are ATR-based and targets are defined using configurable risk-reward ratios.

This strategy is designed for trending environments and performs best during volatility expansion phases.