RESEARCH FRAMEWORK
Bollinger squeeze
Tests whether unusually narrow bands precede a tradable volatility expansion.
Only the measurements the rule needs
Bollinger BandwidthKeltner ChannelATR
Conditions before an entry exists
- Squeeze threshold is percentile-based or fixed
- Minimum duration is met
- Direction rule is independent of hindsight
ENTRY
Close outside the compression boundary with the chosen direction filter.
STOP
Opposite side or ATR-based distance.
EXIT
Expansion target, trailing band or time stop.
DO NOT TRADE
Low-liquidity compression and entries whose spread expands with the breakout.
What has to happen before capital is at risk
1Use rolling thresholds
2Test direction-neutral baseline
3Measure false breaks
4Add realistic slippage
Report gross and net results, the full eligible sample, maximum drawdown, trade distribution and any rule changes. Then repeat on data that did not influence the design.
Use the same protocol every time.
The CSV test plan records eligibility, costs, execution, outcome and rule adherence without turning an example into a promise.
Download test-plan CSV ↓