A comparative study of Bollinger Bands and rate of change with reference to NIFTY

P. Kumar, H. N. Archana
2022 Prayukti – Journal of Management Applications  
The purpose of this study is to compare Bollinger Bands (BB) and Rate of Change (ROC) indicators on Nifty50 for the financial year starting from 01/04/2021 to 31/03/2022 to find out which one of the indicator or the combination of the indicator can generate better returns with the use of Streak software. Streak is an algo trading platform which facilitates traders to back test trading strategies by giving some entry and exit conditions and deploy the same for automatic trading. A good technical
more » ... indicator should give fewer signals with high accuracy as there will be more brokerage costs involved if there are more signals. In this study it is found that BB can give fewer signals with greater accuracy. ROC gives more signals with poor accuracy. Superior returns can be obtained if these indicators are combined. Therefore, it is always recommended to investors not to use any indicator in isolation as it is prone to more risk
doi:10.52814/pjma.2022.2205 fatcat:bxbyfmkfkfbs5gp6d7pe352xye