Bollinger Band Breakouts Filtered by an EMA with ATR Exits

Summary

This strategy enters long when the close moves above the upper Bollinger Band and is also above an exponential moving average. It enters short when the close is below the lower band and below the EMA. The configuration uses a 50-period EMA, 20-period band basis, a two-standard-deviation band width, and a 14-period ATR by default, with settings exposed for adjustment.

Stops are placed one ATR from the closing price, while profit limits are set at twice that distance under the default risk/reward input. The author describes the method as aimed at short moves and gives tick ranges for typical and sideways-market outcomes, but provides no supporting test period, trade log, costs, or risk statistics. The script is a simple breakout template; it does not establish that the claimed outcomes generalize, and repeated qualifying bars may produce entries without additional filters for market regime or execution.

Key ideas

• Long entries require a close above both the upper Bollinger Band and the EMA.
• Short entries require a close below both the lower band and the EMA.
• The default stop distance is one ATR, and the default profit distance is twice ATR.
• The author gives tick-based outcome claims but supplies no backtest evidence or trading costs.
• The script does not add a separate market-regime filter.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.