Trading logics points of BBHL band H1 series

Introducing the trading logic points of the BBHL band H1 series.
(Please note that what is introduced here is mainly the base logic; there are other finer logics included, and since they operate in combination with these, it is not necessarily always in the same behavior as shown here.)

This BBHL band H1 series is an EA that trades using short-term price movements based on the daily Bollinger Bands (BB) and the recent several days to several tens of days’ highest and lowest lines as references.

1. About the trading method

From the angle and position of the BB, the highest/lowest lines, and the angles of the medium-to-long-term moving averages, it determines whether the market is settled in a certain price range (range tendency) or whether a trend is forming.
When it is settled, it trades on a range basis (selling when price is above the range, buying when below); when an uptrend or downtrend is forming, it trades on a trend-following basis (aiming for small recoveries while following the trend), targeting short- to mid-term price fluctuations.

# Trading on a Range Basis

When trading on a range basis, the following trades are performed.
Basically, when the price is positioned above the BB, it sells; when it is positioned below, it buys.
Blue arrows (⇒) indicate buy entries, red arrows (⇒) indicate sell entries.
Counter-trend trading is the basic approach.

# Trading on a Trend-Following Basis

When trading on a trend-following basis, the following trades are performed.
Basically, buy when the price is rising, and sell when it is falling.
This is fundamentally a momentum (trend) trading approach.

Rising trend:


Falling trend:


These are just examples, and while they are working quite well in many cases, please understand that this is not guaranteed to always be the outcome.
Depending on the currency pair, the conditions for range vs. trend-following may differ, and they can switch quickly, so it is possible to hold both buy and sell positions.
Also, please note that there may be irregular determinations.

2. Entry timing

To reduce careless entries, entry timing uses the BB break series logic and only enters when the short-term BB is broken.
Entries are made at timings where the red arrow (⇒) breaks the BB to the downside.

3. About stop-loss lines

Setting the stop-loss line (stop order) by being aware of the recent several days to several tens of days’ highs or lows reduces losses and aims to improve profitability and win rate.
However, there is a possibility that the stop-loss width becomes large, so a maximum cap is set to about 50–500 pips.
The stop-loss line is set as shown by the red dotted line (below the recent hours’ low).

4. About closing conditions

Closing conditions mainly follow patterns 1–5, and the numeric thresholds differ by currency pair.
Depending on the currency pair, meeting 2–5 is rare, so 1 tends to be the main condition.
2–5 are judged at the 1-hour chart confirmation.

1) Exit at the entry limit and stop-loss at the time of entry
Note: there is a logic to raise the stop-loss (or lower it) once a certain unrealized profit is achieved 2) If there is a sharp rise or fall in a certain period
3) If there is a revert at the recent high (or low) within a certain period
4) If a moderate profit exists and a large reversal occurs
5) When many days have passed since the initial position was held (then the position is reset)

■ EA for this logic

The EA using this logic and its forward-test (performance on a demo account) are as follows.

1. Multi-currency version (Integrated Edition)

BBHL band H1 (Integrated Edition)(Integrated version for GBPJPY, AUDJPY, NZDJPY, CADJPY, USDJPY, EURJPY, GBPUSD, EURUSD, AUDNZD, GBPCHF)

BBHL band H1 Cm7(Version for AUDCHF, NZDCHF, USDCHF, USDCAD, EURCHF, CHFJPY, NZDUSD)

2. Individual currency pair versions

BBHL band H1 for GJ

BBHL band H1 for AJ

BBHL band H1 for NJ

BBHL band H1 for CJ

BBHL band H1 for UJ

BBHL band H1 for EJ

BBHL band H1 for GU

BBHL band H1 for EU

BBHL band H1 for AN

BBHL band H1 for GC

■ Backtest-only trial version EA

Below is a backtest-only trial version of some EAs, so please feel free to use it.
(Not for regular operation.)
BBHL band H1 for CJ：【Backtest-only version】EA_BBHLband_H1_forCJ_1.03.zip
BBHL band H1 for EJ：【Backtest-only version】EA_BBHLband_H1_forEJ_1.02.zip