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Breakout Trading Strategy based on Bollinger Bands

Strategy Description

This simple trading strategy enters a long position when the daily closing price crosses below the lower Bollinger band and a short position when the daily closing price crosses above the upper Bollinger band. A long position is closed when the daily closing price crosses above the moving average. A short position is closed when the daily closing price crosses below the moving average.

Example

Data

Daily closing prices of EUR/USD FX rates included in the repo.

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