Band Reversion EA

Band Reversion EA

Overview

Band Reversion EA is a mean-reversion Expert Advisor. It fades stretched moves back towards the centre of a Bollinger band, and it only does so when a regime filter says the market is ranging rather than trending. It was built as a portfolio complement to trend-following systems, which is why its behaviour is deliberately opposite to theirs.

How it works
* An entry is considered when price touches or crosses a Bollinger band and then re-enters it, so the EA does not sell into a move that is still extending.
* An RSI confirmation requires the move to be genuinely stretched, not merely wide.
* A regime filter blocks entries when the market trends: the slope of a long moving average, or an ADX ceiling, or both. A mean-reversion system loses its edge exactly when a trend begins, and this filter is what keeps it out.
* The exit is the middle band, placed as a real take profit order and refreshed at the close of every bar. The target therefore follows the band instead of being read tick by tick against a band that is still forming.
* A time stop force-closes a position after a configurable number of bars: a reversion that has not reverted is a trend.
* A spread filter and a minimum stop distance protect execution on wider-spread crosses.

Risk management
Fixed lot, percentage of equity risked per trade, or risk-based with a maximum lot cap.

Recommended use
Designed and tested on AUDNZD H1, a range-prone cross. No hardcoded symbol. A HEDGING account is required: the EA can hold a buy and a sell at the same time and counts its positions per direction, which a netting account cannot reproduce. Any broker, no DLL.

Backtest results
MetaTrader 5 Strategy Tester, 100% real tick data, January 2016 to June 2026, AUDNZD H1, initial deposit 10 000 USD, leverage 1:100: net profit 881 USD, profit factor 1.34, maximum balance drawdown 2.59%, 268 trades, 61.6% of trades profitable, average win 21 USD against average loss 25 USD.

This is a low-volatility, low-return component: the drawdown is small and so is the profit. Its purpose in a portfolio is to earn during the periods when trend systems do not.

Disclaimer
Trading Forex and leveraged products carries a high risk of capital loss and is not suitable for all investors. Backtest results are historical simulations; they do not reflect real transactions and do not guarantee future performance. Test on a demo account before any live use. This product does not constitute investment advice.

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5 (2)
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5 (3)
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Lo Thi Mai Loan
5 (3)
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5 (3)
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Simon Reeves
5 (15)
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Arkadii Zagorulko
3.54 (13)
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