Expert based on Bollinger Bands
Budget: €30 – €250 EUR
Hello everyone I would like to try to create an expert based on Bollinger Bands.
The strategy (Mean Revers)
The theory behind this expert is the alternation between Bulge and squeeze, to exploit it I use some indicators such as %b, bandwidth and StDev.
The strategy is quite simple.
We wait for the explosion of volatility with the widening of the Bands, we wait for the end of the bulge, and we verify that the Band Distance Variation (BDV) marks at least the level -30 (external variable expert).
At the retest of the band opposite to the direction of the trend (%B <0.2 for the long and %b >0.8 for the short) we enter the market, in the direction of the previous bulge.
For the exits there are 2 possibilities, if you use short TF, up to 30M you exit on the opposite band from H1 onwards you exit half at 0,5 %b and the other half on the opposite band. In this case BreakEven at par (external variable possibly to be optimized) at the close of the first half.
alternatively you can use a TP in Pips but it is not recommended.
This strategy uses as Stop Loss the opposite band but I would prefer to have a second stop in pips in case of high volatility and if the price does not reach the opposite band but goes in the opposite direction.
The lots must be in % of the money on the account.
Max 5 trades at a time
TF 15 -30 Min - 1H
The strategy (Mean Revers)
The theory behind this expert is the alternation between Bulge and squeeze, to exploit it I use some indicators such as %b, bandwidth and StDev.
The strategy is quite simple.
We wait for the explosion of volatility with the widening of the Bands, we wait for the end of the bulge, and we verify that the Band Distance Variation (BDV) marks at least the level -30 (external variable expert).
At the retest of the band opposite to the direction of the trend (%B <0.2 for the long and %b >0.8 for the short) we enter the market, in the direction of the previous bulge.
For the exits there are 2 possibilities, if you use short TF, up to 30M you exit on the opposite band from H1 onwards you exit half at 0,5 %b and the other half on the opposite band. In this case BreakEven at par (external variable possibly to be optimized) at the close of the first half.
alternatively you can use a TP in Pips but it is not recommended.
This strategy uses as Stop Loss the opposite band but I would prefer to have a second stop in pips in case of high volatility and if the price does not reach the opposite band but goes in the opposite direction.
The lots must be in % of the money on the account.
Max 5 trades at a time
TF 15 -30 Min - 1H
Related categories:
MQL4