Bollinger Bands strategy with RSI and MACD v1.0

The Bollinger Bands strategy with RSI and MACD v1.0 tool is a comprehensive automated trading system that combines mean-reversion Bollinger Bands logic with momentum and trend filters for high-probability trade execution.

Usage

The strategy identifies long opportunities when the price crosses above the lower Bollinger Band and short opportunities when it crosses below the upper Bollinger Band. To refine entries, users can toggle RSI and MACD filters:

• Mean Reversion: Basic entries trigger when price rejects the outer bands and moves back toward the mean.
• RSI Filter: If enabled, long trades only trigger when the RSI is below a specified oversold level, and short trades trigger when above an overbought level.
• MACD Filter: Users can filter trades based on MACD zero-crosses or a custom "MACD variation" logic that looks for specific histogram momentum trends over the last three candles.
• Position Management: The strategy features a multi-stage exit. Half of the position is closed when the price touches the middle band (basis), and the remainder is closed at the opposite band. Users can also enable fixed percentage take-profits and trailing stop-losses.

Details

This script implements a dynamic exit system using arrays to manage multiple simultaneous orders (pyramiding). It tracks individual trade IDs to handle partial closes at the middle band and full closes at the outer bands or fixed TP/SL levels. The "MACD variation" logic provides an alternative to standard crossovers by analyzing the slope of the MACD histogram, allowing the strategy to enter based on fading or increasing momentum rather than just trend direction.

Settings

Bollinger Bands

• BB source: Determines the price data used for Bollinger Band calculations.
• Bollinger Bands SMA length: The lookback period for the middle moving average.
• Bollinger Bands StdDev length: The multiplier for the standard deviation bands.

Risk Management

• Trail Long/Short Loss (%): The percentage distance for the trailing stop-loss.
• Maximum orders: Sets the limit for simultaneous open positions in one direction.
• Position size: The number of units or contracts traded per entry.

RSI & MACD

• Use RSI: Enables the RSI oversold/overbought filter.
• RSI period / Source: Parameters for the RSI calculation.
• RSI value for buy/sell: Thresholds for trade validation.
• Use MACD / Variation: Enables standard MACD zero-cross filters or the 3-candle momentum variation.
• MACD fast/slow/signal length: Standard MACD period settings.

Take Profit

• Use maximum TP long/short: Toggles a fixed percentage take-profit.
• Maximum take profit long/short (%): The percentage distance for the fixed exit.

FAQ

How do I use the MACD variation setting?

The MACD variation setting requires "Use MACD" to be active. It looks for a sequence where the MACD histogram has been decreasing for three candles to signal a sell, or increasing for three candles to signal a buy, rather than waiting for a zero-line cross.

Can I trade with only Bollinger Bands?

Yes, simply disable the "Use RSI" and "Use MACD" checkboxes in the settings menu to use the core mean-reversion logic.

How do I access Bollinger Bands strategy with RSI and MACD v1.0?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.