Bollinger LIFO Tracker Strategy

The Bollinger LIFO Tracker is a custom backtesting and visualization tool built on top of the Bollinger Bands indicator. It combines dynamic entry/exit signals with LIFO (Last In, First Out) logic for selling, and tracks portfolio metrics like amount-days, gain, and average holding duration.This Pine Script v5-based strategy is designed to simulate realistic trading behavior, giving traders a clear picture of how their entries and exits would have performed under historical conditions.

Core Components of the Strategy{ At the core of the system lies the Bollinger Band indicator , built using a user-selectable moving average (SMA, EMA, RMA, WMA, or VWMA). It calculates:

Basis: The moving average of the closing price.

Upper Band: Basis + (multiplier × standard deviation)

Lower Band: Basis − (multiplier × standard deviation)

These bands dynamically adjust with market volatility.

2. Buy Logic: A buy is triggered when:

The previous candle’s low is below the lower band.

The current candle closes above the lower band.

The price is sufficiently below the last buy (gapPercent condition).

The current time is within the backtest date range.

once a buy is executed, its price and timestamp are stored in arrays, awaiting future sell evaluation.

3. Sell Logic: LIFO-Based Exit Strategy

A sell is triggered under two main conditions:

The price touches the upper Bollinger Band, then closes below it, indicating potential reversal.

Or a predefined profit target (or minimum profit) is met.

Sales are executed using LIFO logic—the most recent unsold buy is considered first.

4. Metrics Tracked

For deeper insights, the script tracks the following:

Amount-Days (amtdayscls): Measures capital exposure in time, i.e., the amount × number of days held.

Average Holding Duration: Total days across all closed trades.

Gross Gain: Total profit/loss considering open and closed positions.

Percentage Gain: Realized gain relative to average amount deployed.

These metrics help evaluate both efficiency and risk exposure.

5. Visual Signals & Results Table

Visuals on chart:

 Buy signals are shown as green triangles below bars.

 Sell signals as red triangles above bars.

Result table (top-right) displays key statistics

Start–End Date

Buy/Sell Count

Amt-Days Closed

Total Buy/Sell

Avg Holding Days

Total Gain

Gross Gain

% Gain

This gives an immediate snapshot of performance and behavior during the backtest window.

⚙️ User Controls

Users can configure:

Backtest period

Gap size between buys

Profit targets

Max lots held simultaneously

Whether to show signals and tables

These inputs make the script flexible for testing different market environments or trading styles.

🧠 Why LIFO?

Using LIFO (Last In First Out) mimics aggressive trading—selling the most recent entries first to take quicker profits. This can:

Reduce average holding time.

Improve capital efficiency during sideways markets.

Avoid waiting for older positions to recover.

🚀 How to Use It

download trading view pinescript

Copy & paste the script into the Pine Script editor in TradingView.

Customize your parameters.

Run the script and observe the signals and result table.

Test it on different symbols or timeframes.

🧾 Final Thoughts

The Bollinger LIFO Tracker script blends technical indicators with quant-style metrics, offering a versatile framework for tactical entry-exit analysis. core thought behind this indicator ir to grab small swings frequently. this strategy is best suited for index or any stock whos high and low is well with 30 to 40% range. 

say prices continue to drop from the day you started with it. then continue to trade as the th indicator till prices comes back to startting price or  more. completing its cup and handle pattern. user is suppose to continue trade with this system Whether you're exploring gap strategies, Bollinger-based setups, or just want better visibility into trade duration and profitability, this tool gives you actionable insights—all visually represented on your chart.

This strategy is meant for backtesting and analysis. For actual trading, risk management and execution must be handled through dedicated systems.