Bollinger Bands probabilistically analyze price fluctuations. There are many EAs (automatic trading software for MT4) that incorporate Bollinger Bands, but the EA introduced in this article uses the Bollinger Band in a special way for extra confirmation of trade signals.
This EA is based on our own strategy based on a unique set of principles and parameters (find it here). Continue reading to see how this robot for Metatrader 4 works and to download it for free.
This EA uses not only the Bollinger band specified in the parameters (Bollinger Band 1) but also the Bollinger Band (Bollinger Band 2) obtained by adding 1 to the deviation specified in the parameters.
For example, if the deviation is set to 1 with the parameter, the Bollinger band with deviation 2 that is 1 added to this deviation is also used in this EA.
This EA will place a buy order if the following conditions are met (sell order is the reverse):
This entry logic is only confirmed when a new candlestick is created.
In the case of a buy order, the stop loss is set to the upper band of Bollinger Band 1. The stop loss is reset to the Bollinger Band 1 upper band each time a new candlestick occurs. Keep in mind that the EA and this strategy don’t use take profit targets but instead rely on trailing stops.
This EA will close the buy order if the following conditions are met (the sell order is the reverse):
This exit logic is only checked when a new candlestick is created.
There are many trading strategies that place a buy order on the assumption that the trend has started once the Bollinger Band is surpassed. On the other hand, this EA is characterized by the use of The Stochastics and the MACD to more carefully determine whether a trend has started. The exit logic is also solid. When the Stochastics or the MACD crossovers, indicating that the trend is ending, the exit is executed. Even so, if you break out of the upper band of the Bollinger Band, you'll be able to keep most of your profits.
Note: Backtest results may be optimized. Also, the backtest results may differ from the trade results when using a live trading account. Please understand this before using the EA.
Download the "TripleCrossover" Forex robot from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
Related education and FX know-how:
Forex Education - Basics:
Free Forex eBooks:
Forex Education - FX Brokers:
Forex Education - Technical Analysis:
Forex Education - Money Management:
Forex Education - Psychology:
Other trading tools: