Trading with SmartBolli Strategy — Combining Bollinger Bands, ADX, and ATR

Hello Traders,

When it comes to algorithmic trading, one of the biggest challenges is adapting to different market conditions. A single approach rarely works all the time, which is why flexible strategies are important. The SmartBolli concept is one such example, blending Bollinger Bands, ADX, EMA filters, RSI, and ATR-based risk control into a unified system. Multi-Strategy Flexibility

• Ranging Markets (ADX < 20):
  In quieter phases, price tends to oscillate around the mean. A Bollinger Band mean-reversion approach can be effective here, catching short-term reversals when price returns toward its average.

• Trending Markets (ADX > 25):
  When the market gains momentum, breakouts become more reliable. Bollinger Band breaks can then be used to capture trend-following entries.

This duality makes the approach versatile across different conditions.

Professional Filters & Risk Management

• EMA50/200 & RSI14 Filters help avoid false entries by aligning trades with broader momentum.

• Volume Confirmation: Higher-than-average volume (e.g., >1.5× MA) can be used to validate breakout strength.

• ATR-Based SL/TP:

  • Stop Loss = 5 × ATR

  • Take Profit = 10 × ATR
    These adaptive levels scale with volatility, keeping exits proportional to current market conditions.

• Trade Management: Trailing stop and breakeven rules can be applied to secure profits once the trade moves favorably.

• Dynamic Lot Sizing: Risk can be standardized by allocating a fixed % of equity per trade. More advanced variations include grid or anti-martingale scaling.

Practical Applications

• For new traders: The combination of well-known indicators (Bollinger Bands, ADX, ATR, RSI) offers a structured entry into systematic trading.

• For advanced users: These building blocks can be integrated into larger multi-strategy systems.

• For gold traders (XAUUSD): Volatile instruments like gold respond well to volatility-based exits (ATR) and volume confirmation.

Getting Started with the Strategy

To test this approach, traders can:

1. Run backtests with ADX filters for ranging vs. trending markets.

2. Experiment with ATR multipliers for different SL/TP profiles.

3. Adjust volume filters to see how liquidity impacts breakout reliability.

4. Apply the concept to different timeframes (M5, M15, H1) for comparison.

Final Thoughts

The SmartBolli framework is not about one fixed setting, but rather about adapting strategy components to market behavior. By combining trend/range filters, volatility-adjusted exits, and volume confirmation, traders can create a more resilient rule set for automated systems.

This concept was shared with the MQL5 community to encourage further testing, feedback, and improvements. If you experiment with it, consider sharing your results so others can benefit from your findings.

Happy trading!
— Van Minh Nguyen