Does Bollinger dip in an uptrend actually work on IWM? We tested it

This strategy made money overall, with a total return of 43.87% from 23 trades, and it had a high win rate of 78.26%, meaning most trades were winners. However, the ride was not perfectly smooth, as the maximum drawdown hit -13.40% during a rough stretch from late September to late October 2018, which is where the strategy hurt the most. The result does not appear to be driven by just a few lucky trades, since the average trade returned a solid 1.65% and the consistency shows it was profitable in 3 out of 4 walk-forward periods, so the edge held up across different market conditions. The entry-timing edge is strong, with real entries beating 85% of random-entry runs, which means the entry signal itself is doing most of the work rather than the exits. Overall, this is a steady strategy with a clear entry edge, but you should be prepared for occasional sharp drawdowns like the one in 2018.