The Bollinger Bands Mean Reversion and Momentum Strategy is an algorithmic trading bot designed for the EURUSD currency pair. It operates on a 3-minute timeframe (M3) and combines Bollinger Band extremes to identify overbought and oversold conditions with momentum filtering to confirm high-probability reversals. The bot includes automated risk management to protect capital during volatile market movements.
Backtested over 22 months (January 2024 to October 2025), the strategy achieved a net profit of $23,129 on a $1,000 initial investment, representing a 2,300% return with a profit factor above 1.2 across more than 2,800 trades. It demonstrated profitability in both long and short positions, with controlled risk where the largest winning trade exceeded the largest loss.
Live trading results starting November 2025 show a net profit of $892, a profit factor above 1.3, and a 56.6% win rate over 60 trades. The largest win was $218 compared to a largest loss of $126, with a maximum drawdown of 8.4% and a traded volume of $7.1 million. These live results validate the strategy’s economic edge and performance consistency.
Developed by a FinTech student, the bot emphasizes academic rigor, professional coding standards, transparent reporting, and active management for ongoing optimization.