EURUSD Bollinger Band Mean Reversion with EMA and RSI Filters

Summary

This EURUSD strategy combines Bollinger-style volatility bands with a 200-period exponential moving average and a 14-period RSI. It seeks long entries when price reaches the lower band while remaining above the EMA and RSI is below 45; short entries use the upper band, price below the EMA, and RSI above 55. The script is intended for 15- or 30-minute charts and limits trading to a specified Indian Standard Time session, with at most one entry per day.

Trade management uses pip-based profit and loss distances, moves the stop to entry after a favorable move, and closes open positions near the end of the session. The code includes a configurable recent-history filter and plots the bands, EMA, and trade levels. The document provides rules and implementation details but no performance results or independent validation. Its stated settings and market assumptions are specific to EURUSD; transaction costs, broker feed, pip conventions, and intrabar order behavior can affect results. The breakeven rule is based on each bar’s high or low, so historical simulation may not capture the exact order of price movements within a bar.

Key ideas

• The strategy looks for band extensions while filtering direction with a 200-period EMA.
• RSI thresholds qualify potential entries after price reaches an outer volatility band.
• A session window and daily entry cap constrain trading activity.
• Profit targets, stop losses, breakeven movement, and an end-of-day close define exits.
• The document gives no backtest statistics to establish profitability.

Tags

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