The Bollinger band EA; yet another strategy that can be used to trade the forex market. This EA was developed from a well tested Bollinger band strategy, which trades the market with the Bollinger band indicator. Now instead of working it out manually, one can actually use this EA to save time and boost confidence based on the precision of the EA.
THE BOLLINGER BAND:
This method of trading the forex market was developed by John Bollinger in the 1980s. It is used to measure how high or low the price of a commodity has become compared to what it was in past trades. It employs the concept of standard deviation to make notes above and below the moving average line, which defines the upper and lower rate boundaries. These boundaries are what form the pricing channels for measuring volatility.
BOLLINGER BAND ENTRY CONDITIONS:
When trading the forex market with an EA, there are certain conditions that must be met before the expert advisor can possibly initiate a trade. The Bollinger band EA offers quite a lot of entry position into the forex market, which is to say it is flexible and versatile. However, a lot of expert traders recommend the use of the Bollinger band EA in a ranging market where the price of the currency pair being traded makes the same high and low moves a number of times within a time period.
If the market is trending down for instance, the lower band works perfectly well, but the upper band does not come into play at all. In this case, there is need for another indicator to cover for the upper band as the lower one can only be used minimally to determine when a retracement may occur. The same goes for when the market is trending upwards.
So, this is the theory of what the Bollinger band EA does when applied in a trade. From what is obtainable, it is not an all rounder kind of EA that can trade every market condition without help. It works well in a ranging market, but not so in a trending market.
FEATURES OF BOLLINGER BAND EA:
1. It is really easy to use and supervise
2. It filters trades by forex sessions and has built in money management system
3. It has flexible multi time frame entry conditions
4. It implements a martingale feature
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