Not to belabor the obvious, but tech traders rarely use Bollinger Bands alone; they are always combined with another indicator, such as MACD or RSI.

I have had good (non ML) results from trading Bollinger Bands when a touch on the low band was confirmed by RSI signalling an oversold condition.

The other issue I expect you’re running into is that stocks don’t trade in a vacuum; they are largely (some more, some less) correlated with the overall market. A stock that signals BUY on a particular day will generally lose if the market declines on that day; a SELL signal will often be costly if the market advances on the day of the sale. So, somehow, the S&P index must also be modeled along with the individual stock.

But, the conclusion is the same. The market is a complex multivariate system which moves according to both rational and irrational conditions. It’s the irrational part that generally gives rational models problems. :-)

(Good example is that oil stocks will generally decline on Middle East instability, even though that instability causes spot crude prices to advance.)

Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

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