This strategy is a dynamic breakout trading system based on Bollinger Bands and RSI indicators. It combines Bollinger Bands’ volatility analysis with RSI momentum confirmation to build a comprehensive trading decision framework. The strategy supports multi-directional trade control and can flexibly choose long, short, or bi-directional trading based on market conditions. The system uses a risk-reward ratio to precisely control the stop-loss and profit targets for each trade, achieving systematic trade management.
The core principle of the strategy is to identify high-probability breakout trading opportunities through multiple signal confirmations. Specifically:
This is a well-designed breakout trading strategy with clear logic. Through multiple signal confirmations and comprehensive risk management mechanisms, the strategy shows good practicality. Meanwhile, the strategy provides rich optimization potential and can be specifically improved based on trading instruments and market environments. It’s recommended to conduct thorough parameter optimization and backtesting before live trading.
/*backtest start: 2023-12-05 00:00:00 end: 2024-12-04 00:00:00 period: 1d basePeriod: 1d exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Bollinger Breakout Strategy with Direction Control", overlay=true) // === Input Parameters === length = input(20, title="Bollinger Bands Length") src = close mult = input(2.0, title="Bollinger Bands Multiplier") rsi_length = input(14, title="RSI Length") rsi_midline = input(50, title="RSI Midline") risk_reward_ratio = input(2.0, title="Risk/Reward Ratio") // === Trade Direction Option === trade_direction = input.string("Both", title="Trade Direction", options=["Long", "Short", "Both"]) // === Bollinger Bands Calculation === basis = ta.sma(src, length) dev = mult * ta.stdev(src, length) upper_band = basis + dev lower_band = basis - dev // === RSI Calculation === rsi_val = ta.rsi(src, rsi_length) // === Breakout Conditions === // Long: Prijs sluit boven de bovenste Bollinger Band en RSI > RSI Midline long_condition = close > upper_band and rsi_val > rsi_midline and (trade_direction == "Long" or trade_direction == "Both") // Short: Prijs sluit onder de onderste Bollinger Band en RSI < RSI Midline short_condition = close < lower_band and rsi_val < rsi_midline and (trade_direction == "Short" or trade_direction == "Both") // === Entry Prices === var float entry_price_long = na var float entry_price_short = na if (long_condition) entry_price_long := close strategy.entry("Long", strategy.long, when=long_condition) if (short_condition) entry_price_short := close strategy.entry("Short", strategy.short, when=short_condition) // === Stop-Loss and Take-Profit === long_stop_loss = entry_price_long * 0.98 // 2% onder instapprijs long_take_profit = entry_price_long * (1 + (0.02 * risk_reward_ratio)) short_stop_loss = entry_price_short * 1.02 // 2% boven instapprijs short_take_profit = entry_price_short * (1 - (0.02 * risk_reward_ratio)) if (strategy.position_size > 0) // Long Positie strategy.exit("Exit Long", "Long", stop=long_stop_loss, limit=long_take_profit) if (strategy.position_size < 0) // Short Positie strategy.exit("Exit Short", "Short", stop=short_stop_loss, limit=short_take_profit) // === Plotting === plot(upper_band, color=color.green, title="Upper Band") plot(lower_band, color=color.red, title="Lower Band") plot(basis, color=color.blue, title="Basis")