Bollinger Band Breakouts with RSI and SMA Trend Filters
Summary
This strategy enters long when the close breaks above the upper Bollinger Band while RSI is above its neutral threshold, and enters short when the close falls below the lower band while RSI is below that threshold. An optional SMA filter permits longs when the SMA is rising and shorts when it is falling. Users can restrict direction and define an intraday trading window; the script closes open positions when that window ends.
Entries are generated after a signal bar closes and are intended for execution on the next bar's open. Stops are set a fixed number of points from the average entry price, and a configurable take-profit limit can be enabled. The script also closes positions when the SMA trend direction flips against them. Despite the strategy title and description mentioning ADX, the supplied logic uses RSI and contains no ADX calculation. No results or testing evidence are included, and fixed point exits and session settings may need adjustment for the traded instrument and timeframe.
Key ideas
- Long and short entries require a Bollinger Band breakout confirmed by RSI relative to a neutral threshold.
- An optional SMA slope filter aligns trades with the prevailing trend.
- Direction controls and a time window can restrict entries, with positions closed at session end.
- Stops and optional profit targets are fixed distances from the average entry price.
- The code uses RSI rather than ADX and provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.