Bollinger Band Bounce Strategy

Bollinger Band Bounce (BBB) Strategy new on 191126

1.      Take touching of Bollinger Bands as signals to open and close positions

a.      Open buy position when touching lower band. Close buy position when touching upper band.

b.      Open sell position when touching upper band. Close sell position when touching lower band.

c.      IMPORTANT: sometimes opening or closing of positions is missed during the candle period as the BB value is moving with the price action. Thus, at the end of each candle period, open/close position if the candle touches the Bollinger Band just in case the position was not opened/closed already during the candle period. (make on/off switch for that)

d.      If c. applies i.e. if situation at candle check at the end of a candle period is: candle touched BB but no position is open only open a position if price action is less than x pips away (inwards) from the BB. Make adjustable for open and close independently.

2.      Open new position every time price action touches, though only one position per candle period

a.      Increase lot size as a defined %ige of position size with opening a new positions in a trading cycle until opposite BB is reached and all positions are closed

3.      Have a limit for the amount of open positions

4.      Enable the opening /closing of positions at a defined distance from the Bollinger band. Both bands to be adjusted independently.

a.      If 0 = open/close when crossing the band.

b.      If 5 = open/close 5pips above the band.

c.      If -5= open/close 5pips below the band.

5.      Make all other Bollinger settings adjustable (period, shift, deviation)

6.      Enable trading only at defined days and hours

a.      Select trading days,

b.      Select trading hours

c.      Make a visualisation on the chart by different background colour during active trading hours (I usually use a black background, so a medium dark grey background for active trading hours would be good)

7.      Use a spread filter that inhibits trades in high spread situation

Settings to control

·        Comment line (enter text, default: bbb)

·        Lot size

·        Money Management (if 0 = off and Lot size value above will apply) as percent risk whereby 1% represents 0.01 Lot/ 1000 $ balance

o   E.g. at 5,000$ balance and 5% risk the position volume would hence be 1*5*5 = 0.25 lots

·        Lot multiplier as % value of previous Lot size (if lot size is 0.25 and %value is set to 10 then next first position opened would be 0.25, 2 ^ndposition opened would be 0.25*1.1 = 0.28 rounded, 3 ^rdposition opened would be 0.25* 1.2 = 0.3 and so on… )

·        Add optional SL to every position (+ value, if 0 = off)

·        Add optional TP to every position (+ value, if 0 = off)

·        Number limit of open positions

·        Bollinger period

·        Bollinger shift

·        Bollinger deviations

·        Bollinger narrowing, see 4

o   open at upper band (set value)

o   open at lower band (set value)

o   close at upper band (set value)

o   close at lower band (set value)

·        check at end of period (see 1.c.) (on off)

·        pips limit for open (see 1.d.) (set value if 0= off)

·        pips limit for close (see 1.d.) (set value if 0=off)

·        Trading days:

o   Monday am (on/off)

o   Monday pm (on/off)

o   Tuesday am (on/off)

o   Tuesday pm (on/off)

o   Wednesday am (on/off)

o   Wednesday pm (on/off)

o   Thursday am (on/off)

o   Thursday pm (on/off)

o   Friday am (on/off)

o   Friday pm (on/off)

·        Trading hours:

o   0 (on/off)

o   1(on/off)

o   …

o   22(on/off)

o   23(on/off)

·        Trading time visualization (on/off)

·        Spread filter: do not open/close when spread is higher than (value) pips