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SHELVED SHORT · 1H · ADVANCED

Historical Volatility Squeeze

Uses Historical Volatility instead of Bollinger Bands to detect squeeze. Shelved — no significant edge over BB Squeeze.

Added: 2026-01-15

Overview

HV Squeeze replaces Bollinger Bands with Historical Volatility (HV) percentile to detect compression. When HV drops below its 20th percentile and then expands, a trade is triggered.

Why It Was Shelved

After extensive testing, HV Squeeze showed no statistically significant improvement over BB Squeeze:

  • Similar signal timing (85% overlap)
  • Marginally different entries (< 0.3% difference in average entry price)
  • No improvement in win rate or profit factor

Given that BB Squeeze is already validated with 2+ years of live-adjacent backtest data, adding a redundant signal source added complexity without edge.

Potential Revisit

HV Squeeze could become relevant if:

  • Market microstructure changes significantly
  • BB Squeeze edge degrades below profitability
  • Combining both signals shows diversification benefit

For now, simplicity wins.

Status: SHELVED

Not actively traded or tested. May be revisited in future regime changes.

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