TopTrend (BBands Stop)

Category: trend, volatility

A trend-following trail stop indicator based on Bollinger Bands volatility. It locks and trails the upper/lower bands to define trend bias and exit levels.

Formula

1. Upper Band(UB) = SMA(Length) + Dev * StdDev; Lower Band(LB) = SMA(Length) - Dev * StdDev \n2. Trend = +1 if Close > UB[prev], -1 if Close < LB[prev] \n3. Offset = 0.5 * (MoneyRisk - 1) * (UB - LB) \n4. StopLevel (Up) = Max(LB - Offset, PrevStop); StopLevel (Down) = Min(UB + Offset, PrevStop)

Inputs

• Length (default: 20)
• Deviation (default: 2)
• MoneyRisk (default: 1.00)
• Signal (default: 1)
• Nbars (default: 1000)

See signal primitives and every published strategy that uses TopTrend (BBands Stop) on WOBR StrategyVerse.