Bollinger Band Reentry with a Layered Mean-Reversion Order Matrix

Summary

This strategy looks for price to break outside a Bollinger Band and then close back inside, treating that move as a liquidity sweep. It enters only when ADX is below a threshold, price agrees with a higher-timeframe EMA filter, and the configured trading session is open. If the sweep option is disabled, band crossings provide the entry trigger instead.

After a signal, the script places up to seven entries, with deeper limit orders spaced by either an ATR-based step or a fixed pip distance. A sizing formula distributes a specified cash risk across the matrix, and an option sets larger sizes at nearer levels. Stops are placed relative to the initial entry; the target is based on the Bollinger basis plus or minus an extra pip amount. At session end, pending orders are canceled. The document describes the rules and automation messages but provides no performance results or validation; pip conventions, broker execution, and risk estimates may vary by instrument.

Key ideas

• Entries require a band reentry, low ADX, higher-timeframe EMA alignment, and an open session.
• The strategy can layer up to seven orders at ATR-based or fixed price intervals.
• Position sizes are calculated from a total cash risk input and each level’s distance to the stop.
• Stops use the initial entry price, while targets track the Bollinger basis with an added offset.
• The document provides no backtest evidence, and actual risk depends on instrument and execution details.

Tags

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