Bollinger Bands draw a middle line (an SMA) and two outer bands offset by a multiple of the standard deviation of recent prices. When the bands widen, volatility is up. When price touches a band, it has moved a statistically meaningful distance from the average. Vant8's Mean Reversion strategy uses band touches as its core entry signal.
The middle band is the mean; the outer bands are how far price would have to move to be unusual by recent standards. Touches and breaks of the bands carry information about both location and volatility.
A simple moving average of close. The baseline price reverts to in a ranging market.
Middle band plus N standard deviations. Treats touches as extended to the upside.
Middle band minus N standard deviations. Treats touches as extended to the downside.
The textbook lookback. Long enough to be stable, short enough to react to recent regime changes.
The textbook multiplier. Roughly 95% of returns in a normal-ish distribution land between the bands — so a touch is genuinely uncommon.
Bollinger Band touches mean reversion only when the underlying market is ranging. In a strong trend, price can ride the upper band for days without reverting — fading those touches loses money. Mean Reversion on Vant8 pairs the band touch with an ADX filter so it refuses to act in a confirmed trend.
Close at or beyond the lower band triggers a long candidate; close at or beyond the upper band triggers a short candidate (on perp) or exit (on spot).
The entry only fires if ADX is below the reversion gate, confirming that the market is ranging rather than trending.
A breakout can push price beyond the upper band and keep going for days. Without a trend filter, fading every touch is a slow way to lose money. Vant8 always pairs the touch with ADX.
A band touch says price has moved far. It does not say which way it goes next. Confirmation candle, ADX gate, and stop-loss are what turn the touch into a decision.
Every indicator Vant8 wires into a live signal has its own page. The ones not listed here are calculated in code but not used to generate a trade decision.
Momentum oscillator on a 0–100 scale. Flags overbought and oversold conditions.
Trend-and-momentum indicator built on the spread between two EMAs.
Simple and exponential averages, plus the crossover signal between a fast and slow MA.
Volatility measured in price units, gap-inclusive. Sizes stops and grid steps.
How strong a trend is, irrespective of direction. Decides whether to follow or fade.
N-bar high and N-bar low. Used by Perp Trend Following for breakout entries and exits.
%K and %D lines pinned to a 0–100 scale from the recent high–low range. Available as a Custom Strategy Builder rule.
The strategies listed above are deployed from the Strategies page on your dashboard. Each one ships with sensible defaults you can tune before deployment.