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Bollinger Band Reversals with ADX and Loss-Based Lot Increases

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Summary

The Well Martin Expert Advisor combines Bollinger Bands and ADX for trading in calmer market conditions. It buys when price breaks below the lower band and sells when it breaks above the upper band. The described setup is for EURUSD on a 15-minute chart and lists indicator settings, take-profit and stop-loss distances, slippage, and an option to make stops visible only to the trader.

After a stop-loss, the EA increases position size by a multiplier until it reaches a maximum, then resets to the initial lot size. This loss-recovery sizing can increase exposure after losing trades, while the stated preference for tranquil markets may leave the strategy vulnerable to strong directional moves. The document references optimization results from 2010 onward but gives no performance figures, test methodology, or risk measures, and recommends treating the EA as a starting point for further strategy development.

Key ideas

  • The EA buys below the lower Bollinger Band and sells above the upper band.
  • It combines Bollinger Bands with ADX and is intended for calmer market conditions.
  • After a stop-loss, position size increases by a multiplier up to a maximum, then resets.
  • Stealth mode makes stop levels visible only to the user.
  • Optimization results are referenced, but no statistics or testing details are supplied.

Tags

ForexMean reversionTechnical indicatorsPosition sizingRisk management

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