Before revision: Then , by viewing Bollinger Bands as an approximation to the random walk plus noise (RWPN) time series model, we are able to modify the Bollinger Band algorithm used in pairs trading and develop a pairs trading variant that we call "Fixed Forecast Maximum Duration  Bands" (FFMDPT).
After revision: Then , by viewing Bollinger Bands as an approximation to the random walk plus noise (RWPN) time series model, we develop a pairs trading variant that we call "Fixed Forecast Maximum Duration Bands" (FFMDPT).