Averaging BBHL band H1 series trade logic points

We introduce the trading logic points of Averaging BBHL band H1 series.
（Note: what is introduced here is the base logic; there are additional detailed logics that work in conjunction with it, so please understand that the behavior may not always match exactly what is shown here.）

This Averaging BBHL band H1 is an EA that bases its logic on BBHL band H1 and supports multiple positions (averaging up buys/sells). （For BBHL band H1 series, please refer to the article here: Key points of the trading logic for BBHL band H1 series）

On a daily basis, it trades by using the Bollinger Bands (BB) and the lines of the highest and lowest levels over the recent days to tens of days, applying short-term fluctuations for trading.

1. About the trading method

We determine whether the market is settled within a certain price range by looking at the BB, the highest/lowest lines, and the angles/positions of mid-to-long-term moving averages to see if a range, trend, or no clear trend exists.
When market is settled, we trade on a range-base (when price is above the BB, we sell; when below, we buy). When an uptrend or downtrend is in place, we trade on a trend-following base (aiming for small retests of price while following the trend), targeting short- to mid-term price fluctuations.

# Trading in a Range-base

During range-base trading, we execute trades as follows.
Basically, when the price is above the BB, we sell; when it is below, we buy.
Blue arrows (⇒) indicate buy entries; red arrows (⇒) indicate sell entries.
Counter-trend trading is the basic approach.
In addition, it supports averaging (martingale) trading: after entering the first position, if the entry conditions are met while the price moves to the negative direction, we perform averaging buys/sells.
However, if we already hold positions at nearby prices, there may be cases where additional positions are not taken.
When averaging, as we move closer to the edge of a more favorable range (closer to the stop loss line), we increase lot size to add positions, thereby lifting the average price of the held positions.

# Trading in a Trend-following base

When trading on a trend-following base, we trade as follows:
Generally, we buy when price is rising and sell when price is falling.
This is basically a momentum-trading approach.
Also here, averaging trades are supported; after entering the first position, if the entry conditions are met while the price moves in the negative direction, we perform averaging buys/sells.

Uptrend:

Downtrend:

These are just examples and represent fairly successful cases, but please understand that it will not always turn out this way.
The range and trend-following conditions vary by currency pair, and they can switch quickly, so you may hold both buy and sell positions.

2. Entry timing

To reduce careless entries, entry timing uses the BB break series logic and only enters when the short-term BB breaks.
We enter at the blue arrow (⇒) timing, when BB breaks upward.

3. About the stop-loss line

By setting the stop-loss line (stop order) with awareness of the nearest few days to tens of days high/low, we aim to reduce stop-loss events and improve profit rate and win rate.
However, the stop-loss range can become large, so we cap the maximum at around 50–500 pips.
The line is set at a level indicated by the red dotted line (above the high from tens of hours earlier).

4. Close conditions

Close conditions mainly follow patterns ①–⑤, and the numerical values such as duration differ by currency pair.
Depending on the currency pair, meeting ②–⑤ is rare, so I think ① is the primary factor.
Conditions ②–⑤ are evaluated when the 1-hour chart confirms the signal.

① Profit target (limit order) at entry
② If within a certain period there is a rapid rise or fall in the positive direction
③ If a retracement occurs at the recent high (or low) within a certain period
④ If a considerable profit is present and a large retracement occurs
⑤ If many days pass since the first position was opened (we reset the position at that time)

■ EAs that support this logic

EAs that use this logic include the following.
・Averaging BBHL band H1 for CJ