Bollinger Bands Breakout EA

Bollinger Bands are a popular volatility indicator that can identify potential breakout opportunities. This Expert Advisor is designed to trade breakouts from Bollinger Bands, aiming to capture strong momentum moves.

Understanding Bollinger Bands

Bollinger Bands consist of three lines:

• The middle band (typically a 20-period simple moving average)
• The upper band (middle band + 2 standard deviations)
• The lower band (middle band - 2 standard deviations)

In normal market conditions, price tends to stay within these bands about 95% of the time. When price breaks through either band, it often signals a potential continuation in that direction.

Trading Logic

This EA implements the following trading logic:

1. Wait for a candle to close above the upper Bollinger Band (buy signal) or below the lower Bollinger Band (sell signal)
2. Enter a trade in the direction of the breakout
3. Set stop loss at the middle band
4. Set take profit at a multiple of the risk