Mean reversion · daily rule · Energy & power
Bollinger Reversion on Superior Plus
What the play says
SPB 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 SPB over exactly the same dates, after costs.
| Play, since 2005 | Hold, since 2005 | Play, 5 yrs | Hold, 5 yrs | |
|---|---|---|---|---|
| Annual return | −1.7% | +1.2% | +7.0% | −8.1% |
| Total return | −32% | +29% | +40% | −34% |
| Worst drawdown | −67.3% | −66.7% | −34.9% | −53.3% |
| Volatility | 19.5% | 30.8% | 17.4% | 31.0% |
| Sharpe ratio | −0.08 | 0.14 | 0.26 | −0.23 |
| Time invested | 26% | 100% | ||
| Switches per year | 8.5 | 0 |
Every call, graded
Right on 112 of 184 closed calls (61%). In calls averaged −0.3%; out calls saw SPB move +1.9% on average.
| Called | Call | Price | Until | SPB moved | Result |
|---|---|---|---|---|---|
| Sep 17, 2026 | OUT | C$7.12 | now | −1.8% | open |
| Aug 10, 2026 | IN | C$7.41 | Sep 17, 2026 | −3.9% | ✕ wrong |
| Mar 17, 2026 | OUT | C$6.63 | Aug 10, 2026 | +11.7% | ✕ wrong |
| Feb 20, 2026 | IN | C$6.36 | Mar 17, 2026 | +4.3% | ✓ right |
| Dec 17, 2025 | OUT | C$6.96 | Feb 20, 2026 | −8.7% | ✓ right |
| Nov 14, 2025 | IN | C$6.13 | Dec 17, 2025 | +13.5% | ✓ right |
| Aug 18, 2025 | OUT | C$6.86 | Nov 14, 2025 | −10.6% | ✓ right |
| Jul 17, 2025 | IN | C$7.25 | Aug 18, 2025 | −5.3% | ✕ wrong |
| Feb 27, 2025 | OUT | C$6.33 | Jul 17, 2025 | +14.6% | ✕ wrong |
| Jan 31, 2025 | IN | C$5.76 | Feb 27, 2025 | +9.8% | ✓ right |
| Nov 28, 2024 | OUT | C$6.15 | Jan 31, 2025 | −6.3% | ✓ right |
| Oct 8, 2024 | IN | C$6.89 | Nov 28, 2024 | −10.8% | ✕ 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 185 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.