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Bollinge band reversal EA
Our EA leverages a Bollinger Band reversal strategy to optimize trading. It places buy orders at the lower band and sell orders at the upper band, avoiding duplicate orders. Recovery orders are triggered if take profit levels aren’t met, with a customizable pip distance and lot size multiplier. Comprehensive risk management includes stop-loss, percentage loss, and order limits. The EA can operate 24/7 or within specified time frames to minimize exposure to unexpected price movements.
How EA WORKS
EA Description
Reversal Trading
The EA places a buy order when the price hits the lower Bollinger Band and a sell order when the price hits the upper band. It ensures no duplicate orders, so if a buy order is active, a sell order won't be placed and vice versa.
Recovery Orders
If an order doesn’t hit its take profit level, the EA automatically places a recovery order. The distance for recovery orders is set in pips. For example, if the recovery distance is 10 pips, and the price moves 10 pips away from the current order, a recovery order is placed.
Take Profit Levels
The first order has a specific take profit level set in the EA settings. Recovery orders aim for a take profit level based on the breakeven point.
Lot Size Management
The initial order lot size is set in the EA settings. Recovery orders use a lot size multiplier. For instance, if the last lot size is 1 and the multiplier is 1.5, the next lot size will be 1.5.
Risk Management:
The EA features comprehensive risk management, including stop-loss, percentage loss, and a limit on the number of orders.
EA Operation
The EA can operate 24 hours a day or be limited by a start and stop time. This feature helps limit the EA's exposure to unexpected price movements by restricting trading to specific times.
Bollinger Band Reversal EA Settings
EA Parameters
General Settings
1. **Initial placement of Order**: Determines the initial order placement strategy.
2. **Initial Lot Size**: Sets the initial lot size for the first order. Default is 0.01.
3. **First Order Take Profit**: Specifies the take profit level in pips for the first order. Default is 5.0 pips.
4. **Stop loss in Pip**: Sets the stop loss level in pips. Default is 0.0 pips, indicating no stop loss.
5. **Minimum Recovery Distance**: Minimum distance in pips between recovery trades. Default is 5.0 pips.
6. **Recovery TakeProfit**: Take profit level for recovery trades. Default is 5.0 pips.
#### Recovery Strategy
7. **Recovery Strategy**: Enables or disables the recovery strategy. Default is true (enabled).
#### Recovery Lot Size Settings
8. **2nd recovery lotsize to 30th recovery lotsize**: Specifies the lot sizes for the recovery trades from the 2nd to the 30th trade. Lot sizes increase progressively from 0.02 to 0.3.
#### Risk Management
9. **Hit % profit – Remove EA on the chart**: Removes the EA from the chart when a specified percentage of profit is hit. Default is false.
10. **Percentage of Profit**: Sets the percentage of profit to hit before removing the EA. Default is 0.0%.
11. **Hit % of Loss – Remove EA on the Chart**: Removes the EA from the chart when a specified percentage of loss is hit. Default is false.
12. **Percentage of Loss**: Sets the percentage of loss to hit before removing the EA. Default is 0.0%.
13. **Stop Trades When Reach DD (in %)**: Stops trading when a certain drawdown percentage is reached. Default is false.
14. **Max Drawdown**: Sets the maximum drawdown percentage allowed. Default is 0.0%.
#### Risk Management 2
15. **Maximum No. of Trades**: Specifies the maximum number of trades the EA can open. Default is 30.
16. **Allow Spread Filter**: Enables the spread filter to avoid trading during high spread periods. Default is false.
17. **Spread Filter Value**: Sets the maximum spread value allowed for trading. Default is 5.0.
18. **Slippage Filter**: Sets the maximum allowed slippage in points. Default is 50.
19. **MagicNumber**: Unique identifier for the EA’s trades. Default is 8881.
#### Filter Trading Time
20. **Time Start**: Sets the start time for trading. Default is 00:00.
21. **Time Stop**: Sets the stop time for trading. Default is 23:59.
#### Bollinger Band Parameters
22. **BandsPeriod**: Sets the period for the Bollinger Bands. Default is 20.
23. **Deviation**: Sets the standard deviation for the Bollinger Bands. Default is 2.0.
24. **Band_Price**: Determines the price used for the Bollinger Bands calculation. Default is Close price.
Trade Entry Algorithm
Reversal Trading
Buy Orders: When the price touches or dips below the lower Bollinger Band, the EA interprets this as a potential oversold condition and places a buy order. This strategy aims to capitalize on the anticipated price rebound.
Sell Orders: Conversely, when the price touches or exceeds the upper Bollinger Band, the EA sees this as a potential overbought condition and places a sell order. This is based on the expectation that the price will likely reverse downwards.
No Duplicate Orders: The EA ensures that only one type of order (buy or sell) is active at any given time. For instance, if a buy order is already open, the EA will not place a new sell order, even if the price hits the upper Bollinger Band. This avoids conflicting positions and helps maintain a clear and focused trading strategy.
Bollinger Band Indicator
