Fx Craft Example EA: Bollinger Bands Mean Reversion

Related: Fx Craft Example EA: MA Cross Strategy Explained - another powerful expert for MetaTrader 5 traders.

An educational example of a mean-reversion Expert Advisor based on Bollinger Bands. It demonstrates how to combine two indicators, limit trading to selected hours, and manage exits based on current indicator values.

Also recommended: Fx Craft Example EA: Range Breakout with Pending Orders - similar expert with strong performance on MetaTrader 5.

Strategy

BUY: Bar 2 closed below the lower band and bar 1 closed back inside the bands. Optionally, use an RSI filter where RSI on bar 2 is below the lower level. SELL: The reverse logic applies, using the upper band and an RSI above the upper level.
Exit: Positions are closed when the price touches the current middle band (for BUY orders, Bid >= middle band; for SELL orders, Ask <= middle band) or when the Stop Loss is hit.
Trading hours limit only the opening of new positions. Overnight ranges (e.g., 22:00–06:00) are permitted. Closing positions always functions, even outside trading hours. Optionally, positions can also be closed outside of these specified trading hours.
Maximum number of open positions at a time is configurable, with a default setting of 1.

Code Demonstration

The code illustrates:
- Reading two indicators using handles and CopyBuffer.
- Checking the number of copied values.
- Implementing an optional, switchable filter.
- Handling time windows in server time, including ranges that span midnight.
- Performing checks for free margin, lot size, and stop level.
- Incorporating a spread filter and order retries.

Inputs

- TimeFrame: The timeframe for signals (defaults to the current chart).
- Bollinger Bands: Period (default 20), deviation (default 2.0), applied price (default Close).
- Use RSI filter: Off by default. If enabled, RSI period is 14, lower level for BUY is 30, and upper level for SELL is 70.
- Trading start/end (HH:MM, server time): 00:00 / 00:00 (setting start = end means trading is open all day).
- Close position outside trading hours: Off by default.
- Lot (fixed): Default 0.10.
- Stop Loss: In points, 0 means no Stop Loss (default 300).
- Max open positions at once: Default 1.
- Magic number: Default 5020.
- Max slippage: Default 10 points.
- Max spread: Default 30 points (0 disables the filter).

Important Information

This is an educational example and not a fully developed trading system. It is intended for use only on demo accounts and in the Strategy Tester. On a live account, it will display a message and cease operation. The software is provided "as is", without any warranty. This is not investment advice. Trading Forex and CFDs carries a high risk of capital loss. License: FxCraft Example EA License (refer to the source code header for details).

You may also like: Indicator Parameters Usage Example - excellent alternative for expert users on MetaTrader 5.

#property copyright "RobotFX"
#property link "https://robotfx.org"
#property version     "1.00"
#property description "This code is educational. Feel free to use, modify and upgrade as you wish. Visit ROBOTFX.ORG for professional trading tools"
#include <Trade\Trade.mqh>
input group "=== Signal ==="
input ENUM_TIMEFRAMES    InpTimeframe     = PERIOD_CURRENT;
input int                InpBandsPeriod   = 20;
input double             InpBandsDev      = 2.0;
input ENUM_APPLIED_PRICE InpBandsPrice    = PRICE_CLOSE;

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.