Bollinger Band Breakouts with Trend, Volume, and Risk Filters
Summary
This strategy enters when a candle closes beyond a Bollinger Band, using an optional long-term exponential moving average to align trades with trend. A volume filter can require volume above its moving average, while a time window, optional weekend closure, daily realized-loss limit, and cooldown can restrict trading. The script supports long and short entries, subject to a maximum number of concurrent trades.
Position size is based on a selected percentage of a compounding equity base or fixed balance, divided by an ATR-based stop distance and adjusted for point value. Each trade receives stop-loss and take-profit orders, with an optional partial profit exit at a chosen reward multiple. The document describes the rules and implementation details but supplies no strategy performance results or instrument-specific evaluation. Filters and risk settings are configurable, so outcomes depend on market, timeframe, execution assumptions, and parameter choices; indicator rules do not establish that a breakout will continue.
Key ideas
- A close outside the Bollinger Bands triggers a directional signal, optionally filtered by price relative to a long-term EMA.
- An optional volume average filter, trading-hour window, and weekend block can limit entries.
- ATR stop distance and a risk percentage determine position size using either current equity or a fixed balance.
- Trades use stop and target orders, with an optional partial close at a specified reward multiple.
- A daily realized-loss limit and cooldown can block new entries after losses or closed trades.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.