Bollinger Bands strategy
- Experts
- Aleksandr Prishenko
- Version: 9.20
- Updated: 22 November 2021
- Activations: 5
Bollinger Bands strategy
An EA to help traders using Bollinger Bands in trading provides an opportunity to evaluate the effectiveness and optimize the three trading methods (strategies) described in John Bollinger’s book BOLLINGER ON BOLLINGER BANDS, with some additions. I do not recommend using in the forex market.
EA Parameters:
Stop Loss, in pips
Take Profit, in pips
Trailing Stop
Trailing Step
Money management: Lot OR Risk
Step trailing stop
The value for "Money management"
Deviation, in points
Print log
STRATEGY # 1 - Breakthrough volatility
The method uses low volatility (compression of Bollinger tapes) as a precursor of high volatility (expansion of tapes). The percentage of relative compression is determined by the Band Width indicator. The indicator% b (price position relative to the ribbons) is displayed in the upper left corner of the chart. The Oscillator For BBS indicator (oscillator normalized to bands) is used to guide the direction.
USE THE STRATEGY # 1
Min.% Compression of the "Band Width" indicator for long positions
Min.% Compression of the "Band Width" indicator for short positions
max %b value to which opening LONG positions are allowed
min %b value above which opening SHORT positions is allowed
Overbought (oversold) according "Oscillator For BBS" indicator
max %b(Osc)value to which opening LONG positions are allowed
min %b(Osc)value above which opening SHORT positions is allowed
Сlose the position at the opposite signal
Use trailing
Only one positions
STRATEGY # 2 - Follow the trend
The method predicts the birth of trends, considering the price strength confirmed by the power of the Money Flow Index indicator.
USE THE STRATEGY # 2
min %b value above which opening LONG positions is allowed
min MFI value above which opening LONG positions is allowed
max %b value to which opening SHORT positions are allowed
max MFI value to which opening SHORT positions are allowed
Use trailing
Only one positions
STRATEGY # 3 - Reversals
The method is based on touch of bands accompanied at by overbought (oversold) indicators. The EA implemented the condition:
- price touching the top tape, the indicator falls (sell),
- price touching the lower tape, the indicator growing (buy).
Trade transactions take place after passing the line
indicator the level (% b (Oscillator) for LONG positions or % b (Oscillator) for SHORT positions)
USE THE STRATEGY # 3
max %b value to which opening LONG positions are allowed
%b(Oscillator)for LONG positions
Check the indicator growing
min %b value above which opening SHORT positions is allowed
%b(Oscillator)for SHORT positions
Check the indicator falling
Close the position on the opposite signal
Use trailing
Only one positions
THE INDICATORS USED:
The indicator "Bollinger New" is used by three methods, https://www.mql5.com/ru/market/product/21976
The "Band Width" indicator is used by method 1, calculated according to the "Bollinger New" indicator.
The Oscillator For BBS indicator is used by methods 1 and 3, https://www.mql5.com/en/market/product/22061
The MFI indicator (Money Flow Index) is a technical indicator used by method 2
The indicators "Bollinger New", "Band Width", "Oscillator For BBS" can be added to the chart, after optimization
F OR EXPERIENCED USERS
Timeframe EA
Timeframe Band_Width
Timeframe Oscillator For BBS
Timeframe MFI (Money Flow Index)
Timeframe Trailing
Chart Indicators(BBNew & Band Width) Add
Chart Indicator(Oscillator For BBS) Add
Optimization should be carried out on the history of the last two years or more, on any period . Optimization can be carried out on the "opening prices", but then double-check the result on "OHLC on M1".
After optimization, the advisor should open long and short positions, otherwise the optimization is incorrect.
You can use all 3 strategies simultaneously (but the first and the second or the second and the third are logical). I recommend installing the adviser on several currency pairs, having previously optimized the parameters for each pair.
You can drag stops, place orders and close trades manually when the advisor is working without any restrictions, the adviser assigns a magic number to each position, each pair has its own.
Use the strategies of real traders.
