Idea by: raposter.
MQL5 Code by: Vladimir Karputov.
Are you looking to boost your trading strategy? The RSI Bollinger Bands EA could be just what you need! This expert advisor generates buy and sell signals based on overbought (OB) and oversold (OS) zones, identified on the M15, H1, and H4 timeframes. For our demonstration, we've selected the EUR/USD M15 chart.
This program employs two distinct triggers to compare traditional methods of determining OB/OS levels:
- Trigger 1: This is the classic approach that utilizes fixed levels to define the RSI overbought and oversold zones, typically set at 70 and 30.
- Trigger 2: Here, we introduce Bollinger Bands around the average RSI for a specified period. The OB and OS zones are then calculated using the standard deviation from this average. For instance, an overbought signal occurs when the RSI value exceeds the RSI_Upper, which is determined by the formula: RSI_Upper = RSI_Sigma * StdDev + RSI_Avg. In this equation, RSI_Sigma represents the dispersion level, and StdDev is the standard deviation calculated from the RSI distribution over recent bars.
From the Strategy Tester reports provided below, it’s clear that Trigger 2 (using the Bollinger Bands method) yields impressive results over an 11-year testing period, outperforming Trigger 1. Additionally, Trigger 2 demonstrates a more consistent performance with significantly lower variance compared to Trigger 1 on the M15 timeframe over the same period.
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