Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Volatility Band – Long Only Reversal Trading System

54 sec read

Iam a trend lover so far and most of my strategies published here are mostly related to trend following system. However to focus on diversify my portfolio with different type of trading systems to control my risk further i was in search of explorining mean reversion trading system.

Here is a volatility based long only reversal trading system inspired from Sylvain Vervoort’s Volatilty Band. Sylvian generally built volatilty for swing trading however here we built a system on top of his volatility band and made it as a long only reversal trading system.

Entry Rules
1)First candle close below the Lower Band of the volatility Band
2)Second candle close above the lower band
3)Third Candle closes above previous candle

Exit Rules
1)One can have a static stops initially followed by an trailing stop based on the risk the people are willing to take
2)One can exit with human based decisions or predefined target exits. Choice of deciding the stop loss and profit targets are left to the readers.

Nifty Hourly
Nifty Hourly

 
Which Market Once Can Practice?

One Can Practice in Equities and derivaties stock markets/indices, However it is not advisable to follow in forex or commodities market

Which timeframe i can practice?

You can practice across different timeframes. Pure Intraday Traders can stick to 5min, 10min or 15min. Positional Traders can stick to hourly or 4 hourly and short term Investors can stick to Daily Charts.

Bank Nifty Hourly
Bank Nifty Hourly

Download Volatility Band – Long Only Reversal Trading System Amibroker AFL code

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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14 Replies to “Volatility Band – Long Only Reversal Trading System”

  1. Sir, great job again. I would also request you to add filters to all your afl so scanning could be easy for beginners. Thanks again.

  2. Dear Sir

    Why only buy Signal, Why not Sell Signal ?? Sell Signal gives more and fast money compare to Buy.

    Bhailal

    1. Bhai,this is good for equity cash delivery base (i think so)
      there are other stra… for your need of selling

  3. Why only buy signal.

    Plz add sell signals and scanning and filter.

    Plz add sell signals also.

    This afl is very helpful to find trend reversal.

    Good work.

    thanks and keep it up.

    will wait for updated afl with short signals.

    1. For Sell Signal comment //sell=0 and uncomment the sell formula and the plotshapes function as shown below in your afl code.

      //Sell = 0;
      Sell = Ref(C,-2) > Ref(up,-2) AND Ref(C,-1)

  4. Hi Rajendran,

    I have been following your blog for quite some time. Your blog is very informative and trading strategies along with their codes are very useful as per back test reports. However to take the strategies live and take significant risks, I think you must be providing premium services to your clients. Please let me know if you do. as I am interested in setting up fully automated trading system with significant investment. Please let me know the details about your service through my email.

    Thanks & regards.

  5. dear rajandran sir ,

    i would request you to please give the metastock code for the
    Volatility Band – Long Only Reversal Trading System.
    also is possible the Short Only code also.

    Regards

    Purav

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