• Overview
  • Reviews
  • Comments (11)
  • What's new

Bollinger Bands strategy

The Expert Advisor is an assistant for the traders who use Bollinger Bands in their trading. With some additions, it includes three trading methods described in the book "BOLLINGER ON BOLLINGER BANDS" by John Bollinger.


EA PARAMETERS

EA inputs for three strategies:

  • Timeframe EA (graphics),
  • Volume lots to trade,
  • Stop Loss,
  • Take Profit,
  • Close the position at a profit, point. 0 =do not use,
  • Set the breakeven point in points from the entry. 0 =do not use,
  • Increase the amount of position at new signals,
  • Maximum lot size when increasing volume of position,
  • Opening Long or Short positions.


STRATEGY # 1 - Breakthrough volatility

The strategy uses compression of Bollinger Bands, low volatility as the forerunner of high volatility and expanding bands. The compression percentage is determined by the Band Width indicator .

Indicator %b (price position relative to the bands) is displayed in the upper left corner of the chart. For direction info it uses Oscillator For BBS (a normalized oscillator for Bollinger Bands).

Parameters:

  • Enabling the strategy,
  • Min % compression "Band Width" for Long and Short positions,
  • %b (limits opening long and short positions),
  • Overbought (oversold) levels according to Oscillator For BBS - confirmation,
  • %b Oscillator for Long and Short positions,
  • Position closing options (touching the band, breack through by a candlestick, opposite signal).


STRATEGY # 2 - Follow the trend

The strategy predicts trend origination by considering the price strength, confirmed by the power of Money Flow Index.

To avoid late entry, the EA may use Oscillator For BBS and set the level (%), limiting the Buy (Sell) entry. Positions can be closed by a breakthrough, early closing can be limited by the parameter 'Close the position at a profit, point'.

Parameters:

  • Enabling the strategy,
  • %b (limits opening long and short positions),
  • MFI indicator level and its parameters,
  • Permission to enter by Oscillator For BBS,
  • Levels (%) to cancel Buys and Sells,
  • Closing option — breakthrough by a candlestick.


STRATEGY # 3 - Reversals

The strategy is based on touch of bands accompanied by overbought (oversold) indicators. Overbought (oversold) areas in the strategy are determined by Oscillator For BBS. %b can be set to zero, and positions can be opened at a breakthrough of lines by candlesticks.

Parameters:

  • Enabling the strategy,
  • %b Oscillator,
  • %b (limits opening long and short positions),
  • opening a long or a short position at a touch or break through the bands by candlesticks,
  • position closing options (by an opposite signal, breakthrough).


Used indicators

The indicators (used by the three strategies) can be displayed on the chart after optimization, but they cannot be used independently. The indicators are displayed only if the indicator timeframe is the same as that of the chart. After the indicators are displayed, it is recommended to set the 'Chart Indicators Add' parameter to false.

In the Bollinger New indicator, the upper and lower bands are configured independently (period, deviation and shift).

Oscillator For BBS — an oscillator (MACD, RSI, MFI, Momentum) normalized for Bollinger Bands. It correctly determines overbought and oversold areas. The upper and lower bands are configured independently (period and deviation).

For optimization, you can set the parameters described in the books, then optimize the bands of Bollinger New and choose the parameters of the auxiliary oscillators. Bollinger based strategies work well in the medium term. You can find appropriate parameters for short-term trading, but it is necessary to optimize on at least 2-year data. Custom indicators load computer, and to accelerate the optimization, you may use "Open prices", but then necessarily recheck the results with "OHLC, M1" (check the results obtained by opening only short and only long positions).


You can use all the three strategies at a time (but logically better use the first and second or second and third), and close positions based on one of them. No limitations on moving stops, placing orders and closing trades.

The EA sets a magic number to its positions and does not work with other positions.


Your comments and suggestions will be appreciated/

Use strategies of real traders!

No reviews
Version 6.20 - 2015.01.21
Changed the main loop of Band Width indicator calculation. The Expert Advisor has become faster to optimize.
Version 6.10 - 2015.01.13
Added an option for increasing position volume upon new signals.
Version 6.0 - 2014.12.24
Full version that includes three trade modes (3 strategies) based on Bollinger Bands described in the book "Bollinger on Bollinger Bands" plus some additions.
Version 4.10 - 2014.08.26
1. Various settings of indicators Bollinger Bands and DEMА can be used for buys and sells. Buys and sells can be canseled;
2. Magic number of an Expert Advisor is assigned depending on the symbol;
3. By default the RSI indicator is set on the EA timeframe with the period 14, only levels can be changed;
4. A more convenient location of input parameters.
Version 3.50 - 2014.04.21
1. Added the possibility to increase the position at new signal coming;
2. RSI is used only for increasing the position size.
Version 2.4 - 2013.12.09
- Fixed errors of working with 4 digit quotes.
- Added new parameter "Increase the volume according to the level Rsi" that allows increasing the volume of positions depending on RSI values.