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Aberration Trend Following Strategy
Aberration Trend-Following Strategy
A legendary long-term trend-following system originally developed by Keith Fitschen in 1986, designed to capture major market trends using Bollinger Bands and volatility filtering.
🔹 STRATEGY OVERVIEW
This mechanical system identifies trend reversals by detecting price breakouts beyond Bollinger Bands, while filtering trades based on market volatility conditions.
🔹 ENTRY SIGNALS
- Long Entry: Price closes above the upper Bollinger Band + volatility conditions met
- Short Entry: Price closes below the lower Bollinger Band + volatility conditions met
🔹 EXIT SIGNALS
- Exit positions when price returns to the middle band (20-period SMA)
🔹 VOLATILITY FILTER
- Only trades when ATR is within acceptable range vs. historical median volatility
- Avoids trading in extremely low or excessively high volatility environments
- Helps reduce false signals during choppy, range-bound markets
🔹 KEY PARAMETERS
- Bollinger Band Period: 20 (customizable)
- Bollinger Band Multiplier: 2.0 (customizable)
- ATR Length: 20
- Volatility Lookback: 50 periods
- Volatility Range: 0.80 to 2.00 of median
🔹 STRATEGY CHARACTERISTICS
- Timeframe: Long-term (holds positions for extended periods)
- Trade Frequency: 3-4 trades per market annually
- Philosophy: Cut losses short, let profits run
- Best suited for: Trending markets across commodities, futures, and indices
⚠️ RISK DISCLAIMER
This strategy is for educational purposes only. Past performance does not guarantee future results. Always perform your own backtesting and risk assessment before live trading.
📊 VISUALIZATION
- Blue lines: Upper and lower Bollinger Bands
- Orange line: Middle band (basis/SMA)
- Green triangles: Long entry signals
- Red triangles: Short entry signals
- Yellow crosses: Exit signals
A legendary long-term trend-following system originally developed by Keith Fitschen in 1986, designed to capture major market trends using Bollinger Bands and volatility filtering.
🔹 STRATEGY OVERVIEW
This mechanical system identifies trend reversals by detecting price breakouts beyond Bollinger Bands, while filtering trades based on market volatility conditions.
🔹 ENTRY SIGNALS
- Long Entry: Price closes above the upper Bollinger Band + volatility conditions met
- Short Entry: Price closes below the lower Bollinger Band + volatility conditions met
🔹 EXIT SIGNALS
- Exit positions when price returns to the middle band (20-period SMA)
🔹 VOLATILITY FILTER
- Only trades when ATR is within acceptable range vs. historical median volatility
- Avoids trading in extremely low or excessively high volatility environments
- Helps reduce false signals during choppy, range-bound markets
🔹 KEY PARAMETERS
- Bollinger Band Period: 20 (customizable)
- Bollinger Band Multiplier: 2.0 (customizable)
- ATR Length: 20
- Volatility Lookback: 50 periods
- Volatility Range: 0.80 to 2.00 of median
🔹 STRATEGY CHARACTERISTICS
- Timeframe: Long-term (holds positions for extended periods)
- Trade Frequency: 3-4 trades per market annually
- Philosophy: Cut losses short, let profits run
- Best suited for: Trending markets across commodities, futures, and indices
⚠️ RISK DISCLAIMER
This strategy is for educational purposes only. Past performance does not guarantee future results. Always perform your own backtesting and risk assessment before live trading.
📊 VISUALIZATION
- Blue lines: Upper and lower Bollinger Bands
- Orange line: Middle band (basis/SMA)
- Green triangles: Long entry signals
- Red triangles: Short entry signals
- Yellow crosses: Exit signals
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这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。