Bollinger Bands Trading Strategy with Automated & Semi-Automatic Execution

Overview:

This strategy detects breakouts and mean reversions using Bollinger Bands (BB). It can function in fully automatic mode or semi-automatic mode, where execution depends on specific conditions.

Entry Rules:

1. Bearish Entry Condition (Lower Band Breakout)

   • If a bearish candle (closing price lower than the opening price) closes below the lower Bollinger Band:
     • Open a short order (lot size based on dynamic risk management logic).
     • Set Stop Loss (SL) at the middle Bollinger Band (SMA) of the previous candle.

2. Bearish Continuation:

   • If another bearish candle forms after opening the first trade:
     • Open an additional short order (lot size determined by custom risk logic).
     • Update SL for all open trades to the middle Bollinger Band of the previous candle.

3. Bullish Entry Condition (Upper Band Breakout)

   • If a bullish candle (closing price higher than the opening price) closes above the upper Bollinger Band:
     • Open a long order (lot size based on dynamic risk management logic).
     • Set Stop Loss (SL) at the middle Bollinger Band (SMA) of the previous candle.

4. Bullish Continuation:

   • If another bullish candle forms after opening the first trade:
     • Open an additional long order (lot size determined by custom risk logic).
     • Update SL for all open trades to the middle Bollinger Band of the previous candle.

Exit Rules:

1. Stop Loss Hit:
   • Trades will close when the price hits the updated SL.
2. No Fixed Take Profit (TP):
   • TP can be defined based on a custom logic if required.
3. Opposite Signal Cancels Previous Trend:
   • If an opposite breakout occurs (e.g., a bullish breakout while short trades are open), the system follows the new signal but does not explicitly close previous trades unless SL is hit.

Automation Modes:

1. Fully Automatic Mode:

   • The system detects signals, executes trades, updates stop losses, and manages risk without manual intervention.

2. Semi-Automatic Mode:

   • Trade execution depends on a start parameter that can be:
     • Manually activated by the trader.
     • Scheduled to start at a specific time/date.
   • When active, the system will detect signals and execute trades based on the defined rules.

Dynamic Order & Risk Management:

• Lot sizing is dynamic and can be set based on:
  • Account balance
  • Risk percentage per trade
  • Market conditions
  • Custom logic (e.g., increasing lot size on trend confirmation)
• Each additional order's lot size is also adjustable via custom logic.
• SL adjustment is applied to all open trades based on the most recent trade’s SL.