Study 2: Directional Signals Using Deviation Bands
Systematically testing deviation band crosses & squeezes in USDJPY, 2000-2021
Motivation: Collecting Signals & Checking Assumptions
Deviation bands are a popular trading indicator, but do they have predictive power? To check this assumption, we’ll test thousands of trading signals on USDJPY that incorporate Bollinger bands, try them during a training portion of the dataset (first 65% of 2000-2021 [daily]) to find the strongest sig…