Bollinger Squeeze Breakout Strategy Diagram
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A breakout diagram built on Bollinger Bands: the bands are drawn one and eight tenths of a standard deviation around a twenty-period average, and a close outside them is taken as the start of a move rather than as an excess to fade. The order volume always carries the open position with it, so every signal reverses the side instead of adding to it.
Strategy Overview
- Bollinger Bands are calculated on finished candles of a single instrument; only the upper and the lower band take part in the decisions.
- The diagram is a breakout, not a reversion: it buys strength above the upper band and sells weakness below the lower band, the opposite of the Bollinger_Bands example in this gallery.
- The volume of every order is the base volume plus the absolute value of the current position, so a signal against an open position closes it and opens the new side in one order.
- Despite the name, no squeeze filter is applied: relative band width is calculated for display but does not enter any trading condition.
Entry and Exit Rules
- Long entry: The candle closes above the upper Bollinger band and the position is not already long. The order buys the base volume plus the size of the open position, which opens a long from flat or reverses an existing short.
- Short entry: The candle closes below the lower Bollinger band and the position is not already short. The order sells the base volume plus the size of the open position, which opens a short from flat or reverses an existing long.
- Exit: There is no separate exit and no protection block: a position is only ever left when the price closes beyond the opposite band and the reversing order flips the side.
Parameters
| Parameter | Default | Description |
|---|---|---|
| Bollinger Period | 20 | Number of candles the bands are averaged over. |
| Bollinger Width | 1.8 | Standard deviation multiplier that sets the distance of the bands from the middle line. |
| Volume | 1 | Base order volume, in lots; the position size is added on top of it. |
| Candles | 00:05:00 | Candle time frame the whole diagram works on. |
Diagram Details
- The candle block feeds the Bollinger Bands indicator block and a converter that reads the close price of the same candle.
- Two converters typed as indicator values pull the upper and the lower band out of the single indicator output.
- Two comparison blocks test the close against the bands, two more compare the position against a zero constant, and each logical AND joins one band condition with one position condition.
- A formula block computes the base volume plus the absolute position and feeds both position modify blocks, which is what turns each entry into a reversal.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.