1. Introduction

Bollinger Bandit is a trend‑following trading system published by George Pruitt, representing a classic channel‑breakout systematic trading model. Instead of using Bollinger Bands for mean‑reversion setups, this strategy only trades breakouts. It features an innovative dynamic moving‑average exit mechanism. The original backtest covered multiple assets including commodities and forex from 1982‑2002, reporting a net profit of over $530,000 USD.

‑ Original strategy source：https://www.earnforex.com/forex-e-books/trading-strategy/Bollinger_Bandit_Trading_Strategy.pdf

2. Full Trading Rules

Core Indicators

‑ Bollinger Bands: Period 50, standard deviation 1.25
‑ MA: Period ranging from 10 to 50

Basic Rules

‑ Timeframe: D1
‑ Assets: Precious metals, forex, energy and others
‑ Only one open position at a time

Entry Rules

Long entry

  1. Closing price of current daily bar is higher than the closing price 30 bars ago
  2. Entry triggers when price breaks above the upper Bollinger Band

Short entry

  1. Closing price of current daily bar is lower than the closing price 30 bars ago
  2. Entry triggers when price breaks below the lower Bollinger Band

Exit Rules

Long Exit

  1. Initial stop‑loss for long position is set to MA 50 when the trade opens.
  2. After each daily bar close, the period of the MA used for stop‑loss is reduced by one. No further reduction once the period reaches 10.
  3. The MA price is treated as a valid stop‑loss level only when this MA lies below the upper Bollinger Band.

Short Exit

  1. Initial stop‑loss for short position is set to MA 50 when the trade opens.
  2. After each daily bar close, the period of the MA used for stop‑loss is reduced by one. No further reduction once the period reaches 10.
  3. The MA price is treated as a valid stop‑loss level only when this MA lies above the lower Bollinger Band.

3.Parameter Settings

Parameter Default Value Description
bollingerLengths 50 Bollinger Bands period
BB_StdDev 1.25 Standard deviation multiplier for Bollinger Bands
liqLength 50 Initial period for stop‑loss MA. This value decreases bar‑by‑bar while holding position, hard lower limit is 10.
rocCalcLength 30 Look‑back period for rate‑of‑change calculation. Trend‑direction filter for entries.
FixedLot 0.1 Fixed trading lot size
MagicNumber 12345 EA magic number

4.EA Source Code / Download

Click to Download

Source code copyright belongs to this site. The underlying trading strategy concept belongs to George Pruitt.
This EA is 100% free. Do not purchase this file from any third‑party sellers. Obtain it only from this official article page.

5. Limitations & Disclaimer

This Expert Advisor is for educational purposes only. No backtest / forward‑test results provided. Users must verify robustness via personal backtest and demo forward‑testing before live usage.
Not financial advice. Forex trading involves substantial risk.