Mean reversion · daily rule · Metals & mining
Bollinger Reversion on AbraSilver Resource
What the play says
ABRA with the play, last two years
Shading shows the play's call from the close that triggered it.
Growth of C$10,000 since 2024
Log scale. After trading costs, with T-bill interest while out.
The record
The play against buying and holding ABRA over exactly the same dates, after costs.
| Play, since 2024 | Hold, since 2024 | Play, 5 yrs | Hold, 5 yrs | |
|---|---|---|---|---|
| Annual return | +10.7% | +97.9% | +10.7% | +97.9% |
| Total return | +26% | +383% | +26% | +383% |
| Worst drawdown | −27.4% | −43.5% | −27.4% | −43.5% |
| Volatility | 30.3% | 72.4% | 30.3% | 72.4% |
| Sharpe ratio | 0.35 | 1.25 | 0.35 | 1.25 |
| Time invested | 17% | 100% | ||
| Switches per year | 5.6 | 0 |
Every call, graded
Right on 6 of 13 closed calls (46%). In calls averaged +7.8%; out calls saw ABRA move +35.6% on average.
| Called | Call | Price | Until | ABRA moved | Result |
|---|---|---|---|---|---|
| Sep 11, 2026 | IN | C$14.19 | now | −23.5% | open |
| Sep 3, 2026 | OUT | C$16.30 | Sep 11, 2026 | −12.9% | ✓ right |
| Sep 1, 2026 | IN | C$14.69 | Sep 3, 2026 | +11.0% | ✓ right |
| Jul 2, 2026 | OUT | C$14.63 | Sep 1, 2026 | +0.4% | ✕ wrong |
| Jun 5, 2026 | IN | C$14.58 | Jul 2, 2026 | +0.3% | ✓ right |
| Mar 31, 2026 | OUT | C$12.59 | Jun 5, 2026 | +15.8% | ✕ wrong |
| Mar 20, 2026 | IN | C$9.95 | Mar 31, 2026 | +26.5% | ✓ right |
| Apr 14, 2025 | OUT | C$3.15 | Mar 20, 2026 | +215.9% | ✕ wrong |
| Apr 1, 2025 | IN | C$3.01 | Apr 14, 2025 | +4.7% | ✓ right |
| Jan 2, 2025 | OUT | C$2.50 | Apr 1, 2025 | +20.4% | ✕ wrong |
| Nov 11, 2024 | IN | C$2.58 | Jan 2, 2025 | −3.1% | ✕ wrong |
| Aug 16, 2024 | OUT | C$2.40 | Nov 11, 2024 | +7.5% | ✕ wrong |
An in call is right when the price rose before the next call; an out call is right when it fell. The latest 12 of 14 calls shown.
How the play works
- In on a close below the lower band (20-day average − 2 standard deviations).
- Out on a close above the 20-day average.
This runs against Bollinger's advice that tags of the bands are not signals. It is shown because so many traders use it.
The case against
Valeriy Zakamulin tested moving-average timing on up to 155 years of U.S. stock data and found no statistically significant edge in the second half of that record. The rules earned their keep in a few severe bear markets and lagged buy and hold for long stretches in between.