Mean reversion · daily rule · Energy & power
Bollinger Reversion on Cameco
What the play says
CCO with the play, last two years
Shading shows the play's call from the close that triggered it.
Growth of C$10,000 since 2005
Log scale. After trading costs, with T-bill interest while out.
The record
The play against buying and holding CCO over exactly the same dates, after costs.
| Play, since 2005 | Hold, since 2005 | Play, 5 yrs | Hold, 5 yrs | |
|---|---|---|---|---|
| Annual return | +11.1% | +9.7% | +27.8% | +31.4% |
| Total return | +883% | +648% | +239% | +289% |
| Worst drawdown | −62.9% | −83.6% | −20.0% | −39.5% |
| Volatility | 22.5% | 42.5% | 20.7% | 47.4% |
| Sharpe ratio | 0.50 | 0.39 | 1.11 | 0.73 |
| Time invested | 26% | 100% | ||
| Switches per year | 9.3 | 0 |
Every call, graded
Right on 138 of 202 closed calls (68%). In calls averaged +2.5%; out calls saw CCO move +1.4% on average.
| Called | Call | Price | Until | CCO moved | Result |
|---|---|---|---|---|---|
| Aug 4, 2026 | OUT | C$130.98 | now | −6.4% | open |
| Jul 13, 2026 | IN | C$127.67 | Aug 4, 2026 | +2.6% | ✓ right |
| Jun 15, 2026 | OUT | C$149.78 | Jul 13, 2026 | −14.8% | ✓ right |
| Jun 10, 2026 | IN | C$132.44 | Jun 15, 2026 | +13.1% | ✓ right |
| May 29, 2026 | OUT | C$154.91 | Jun 10, 2026 | −14.5% | ✓ right |
| May 15, 2026 | IN | C$147.99 | May 29, 2026 | +4.7% | ✓ right |
| Mar 31, 2026 | OUT | C$151.28 | May 15, 2026 | −2.2% | ✓ right |
| Mar 13, 2026 | IN | C$148.19 | Mar 31, 2026 | +2.1% | ✓ right |
| Mar 10, 2026 | OUT | C$163.11 | Mar 13, 2026 | −9.1% | ✓ right |
| Mar 6, 2026 | IN | C$149.02 | Mar 10, 2026 | +9.5% | ✓ right |
| Aug 26, 2025 | OUT | C$105.62 | Mar 6, 2026 | +41.1% | ✕ wrong |
| Aug 20, 2025 | IN | C$97.57 | Aug 26, 2025 | +8.3% | ✓ right |
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 203 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.