MT5 Swing Trading Strategy: EMA200 Filter + Bollinger Reversals + Stochastic Crossover + ATR Risk Management
Contents
1. Introduction
Most Bollinger‑Band mean‑reversion strategies suffer from frequent counter‑trend entries. This Trend‑Filtered BB‑Stoch Swing Strategy solves that issue by applying an EMA200 filter. Entries trigger only when confirmed by Stochastic Oscillator overbought / oversold crossovers. This article gives a brief overview of the strategy and provides the full MT5 Expert Advisor source code implementation.
2. Full Trading Rules
Core Indicators
- Bollinger Bands: Period 20, Deviation 2.0
- EMA: Period 200
- Stochastic Oscillator: 5, 3, 3
- ATR: Period 14
Basic Rules
- Timeframe: All timeframes
- Assets: Precious metals, forex, energy, and others
Entry Rules
Long entry
- Price is above EMA 200
- Bar touches the lower Bollinger Band
- Stochastic Oscillator produces a bullish crossover after entering the oversold zone
Short entry
- Price is below EMA 200
- Bar touches the upper Bollinger Band
- Stochastic Oscillator produces a bearish crossover after entering the overbought zone
Exit Rules
Long Exit
- SL: swing low − 1.5 × ATR
- TP: 2 times the stop‑loss distance
Short Exit
- SL: swing high + 1.5 × ATR
- TP: 2 times the stop‑loss distance
3.Parameter Settings
| Parameter | Default Value | Description |
|---|---|---|
| EMA200_Period | 200 | EMA200 trend‑filter moving‑average period |
| BB_Period | 20 | Bollinger Bands calculation period |
| BB_Deviation | 2.0 | Standard deviation multiplier for Bollinger Bands |
| Stoch_K | 5 | Stochastic Oscillator %K period |
| Stoch_D | 3 | Stochastic Oscillator %D period |
| Stoch_Slowing | 3 | Stochastic Oscillator slowing parameter |
| Stoch_Overbought | 80.0 | Stochastic Oscillator overbought threshold |
| Stoch_Oversold | 20.0 | Stochastic Oscillator oversold threshold |
| ATR_Period | 14 | ATR period for dynamic stop‑loss calculation |
| ATR_Multiplier_SL | 1.5 | ATR multiplier for stop‑loss; SL offset = signal‑bar extreme ± (ATR × multiplier) |
| TP_Ratio | 2.0 | Risk‑reward ratio for take‑profit; TP distance = stop‑loss distance × this ratio |
| LotSize | 0.1 | Fixed trading lot size |
| MagicNumber | 123456 | EA magic number used to identify orders created by this EA |
4.EA Source Code / Download
5. Limitations & Disclaimer
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.