Bitcoin / Dollar BITFINEX:BTCUSD
Bollinger Bands indicate relative high and low prices, using this information you can buy relatively low and sell relatively high. With this strategy you can configure at which percentage from the lower Bollinger Band Gunbot should buy, and at which percentage from the upper Bollinger Band a sell order should be placed.
Combined with RSI , Stochastic or MFI , this might be one of the most powerful strategies Gunbot has to offer. You can even combine multiple of these indicators, and run a BB-Stoch-RSI strategy, only buying or selling when multiple indicators show that momentum is about to turn.
This strategy is often combined with Stepgain, with bb as the buying strategy, then selling with stepgain.
The formula for the Bollinger Bands as calculated by Gunbot:
Middle Band = SMAPERIOD simple moving average ( SMA )
Upper Band = Middle Band + (SMAPERIOD standard deviation of price x STDV)
Lower Band = Middle Band - (SMAPERIOD standard deviation of price x STDV)