Bollinger Breakout Momentum with RSI, Volume, ADX, and Risk Controls

Summary

This strategy looks for directional breakouts beyond Bollinger Bands. A long setup requires price to cross above the upper band after the prior close was inside it; a short setup mirrors this below the lower band. RSI thresholds, volume above its moving average, position relative to a long-term EMA, and ADX strength and direction filter the entries.

The script places entries in either direction and sets a stop from the signal bar’s low or high, capped by a percentage of entry price. Its profit target is twice the resulting risk distance, and it can close positions at a specified intraday time. The document provides the rules as code but includes no performance results, test design, or market-specific evidence. The stop variables are set only when the strategy is flat at the signal, and the intraday exit depends on the chart’s time settings; traders would need to verify execution behavior and validate the rules across instruments and periods.

Key ideas

• Long and short entries require a Bollinger Band breakout after the previous close was inside the band.
• RSI, relative volume, EMA direction, and rising ADX with directional movement all act as entry filters.
• Stops use the signal bar’s extreme, subject to a maximum risk distance based on entry price.
• Profit targets are set at twice the calculated risk distance, with an optional time-based close.
• The document provides no backtest results or evidence of profitability.

Tags

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