Long-Only Bollinger Breakout Entries with Staged Exits

Summary

This long-only strategy enters after three consecutive closes above both the 20-period simple moving average and an upper Bollinger band set at half a standard deviation above that average. After a trade is fully closed, a reset rule requires price to close below the moving average and then recover above it before another setup can qualify. The script uses three contracts in its stated defaults and includes dollar-denominated profit and stop settings converted into price points using the instrument’s point value.

Exits are sequenced: one contract is targeted at the configured dollar profit, a second at the upper 2.5-standard-deviation band, and the final position is managed around the upper 2.0 band after the second exit. A close below the 25-period EMA can close remaining exposure, while a stop protects open contracts. The script also formats webhook alerts and plots the bands and exit markers. No performance results or market validation are supplied; actual behavior depends on the instrument, chart interval, costs, and alert execution.

Key ideas

• A long entry requires three consecutive closes above both the 20-period SMA and its upper half-standard-deviation band.
• A completed trade cannot be followed by a new entry until price crosses below and then back above the SMA.
• The exit plan reduces a three-contract position in stages using a dollar target and upper Bollinger bands.
• A 25-period EMA close and a dollar-based stop provide additional exit rules.
• The document gives no backtest results, and webhook execution and settings require instrument-specific verification.

Tags

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