Entropy Core Strategies

BRS Bollinger Bands Trading Strategy

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Backtest Entropy Alpha Strategy with Futures Data Part I

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Entropy Trading Examples

Just have a look with your common sense you can tell **Gail is high beta** and hence we can not find any much trading opportunity amidst the noise of lower timeframes

In case you are confused with the sell signal part –

**To spot downtrend and trading opportunity for a sell signal,**

- One red candle has its close outside 1 SD Bollinger.
- The next candle closes and opens below lower bands of 1 SD Bollinger.
- You enter at the “close” of the second red candle on the time of formation of the 3rd candle.
- You close when the candle touches the median of 1 SD Bollinger.

**Here is another tricky condition to minimize loss (and well maximize profit):**

- So far you have entered in the 3rd candle. If the candle ended as green after your entry. (You have entered the trade in the middle of 3rd candle formation right?)
- Here is what you do stay on the 4th candle – Immediately put 2 buy orders at the “high” of the last candle. Because it will not only exit you from the sell order; it will also open a buy position.

The art of balancing risk and reward in this intricate situation constitutes a strategy of its own, which I’ve aptly named the 3BB strategy. It derives its moniker from the distinctive “green-green-red” or “red-red-green” pattern formation.

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