EA-13729 · Mean Reversion

Exp_i-BandsPrice

This EA trades Bollinger Bands price crossovers using a custom i-BandsPrice indicator that applies additional smoothing. It opens buy positions when the indicator value crosses down below level 4 and sell positions when it crosses up above level 0, with configurable exit signals based on threshold levels.

Open the interactive view (equity curve, symbol switch)

Key facts

RiskMedium
Rating★★☆☆☆
TypeTrading EA
TimeframesM15, H1, H4
IndicatorsBollinger Bands, Custom Smoothed MA (JJMA/JurX/ParMA/T3/VIDYA/AMA)
Author—

Backtest results (H1, about 1 year)

Not backtested yet — this EA could not be converted automatically.

Strategy analysis

The strategy concept is based on Bollinger Bands mean reversion, using the custom i-BandsPrice indicator which converts Bollinger Band position into discrete state values (0-4), where 4 represents extreme overbought territory above the upper band and 0 represents extreme oversold territory below the lower band. Entry conditions are: a buy signal is generated when the indicator value crosses down from 4 (price retreating from overbought zone), and a sell signal is generated when the indicator value crosses up from 0 (price bouncing from oversold zone). Exit conditions are: buy close signal triggers when indicator value drops below 2, and sell close signal triggers when indicator value rises above 1, representing an early exit mechanism based on mean reversion logic. Position sizing is controlled via the MM parameter which adjusts risk proportion, supporting multiple margin modes including balance, equity, free margin, and fixed lot. Money management uses the standardized TradeAlgorithms library opening functions with configurable stop loss and take profit, defaulting to 1000 points SL and 2000 points TP.

Strengths

  • Clear strategy logic based on Bollinger Bands mean reversion with well-defined entry and exit conditions
  • Supports multiple smoothing algorithms and price types, offering high flexibility to adapt to different market conditions
  • Independent toggle switches for opening and closing signals, providing modular trading logic design
  • Uses new bar detection mechanism to prevent duplicate signals and reduce overtrading risk
  • Includes stop loss and take profit settings with a basic risk control framework

Weaknesses

  • Discretization of indicator state values (0-4) may lose granular momentum information, causing signal lag
  • Default SL 1000 and TP 2000 points ratio is questionable; TP may be too distant to achieve in practice
  • Lacks spread filter and trading session filter, potentially resulting in unfavorable fills during high spread or low liquidity periods
  • Signal logic relies entirely on a single custom indicator without multi-dimensional confirmation, prone to false signals
  • MM parameter value of 0.1 is not intuitive and may lead to accidental oversized positions

Possible improvements

  • Add spread filter and trading session filter to avoid opening positions under unfavorable conditions
  • Add multi-timeframe confirmation mechanism, such as higher timeframe trend direction filter, to improve signal reliability
  • Optimize take-profit/stop-loss ratio, consider using dynamic stop loss (e.g. trailing stop) to protect profits

Risk assessment

Overall risk: Medium

  • No spread filter, potentially entering at unfavorable prices during high spread conditions
  • Depends on a single custom indicator; EA cannot run if indicator fails to load
  • Fixed stop loss and take profit in points, does not account for market volatility changes
  • No position check logic, may repeatedly open positions in the same direction

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation3.0
Documentation1.0
Overall2.3

Parameters

ParameterDefaultDescription
MM0.1Money management ratio controlling lot risk percentage
MMModeLOTLot mode: free margin/balance/deducted margin/deducted balance/fixed lot
StopLoss_1000Stop loss in points
TakeProfit_2000Take profit in points
Deviation_10Maximum allowed slippage
BuyPosOpentrueAllow opening buy positions
SellPosOpentrueAllow opening sell positions
BuyPosClosetrueAllow closing buy positions
SellPosClosetrueAllow closing sell positions
InpInd_TimeframePERIOD_H1Timeframe for indicator calculation
XMA_MethodMODE_SMASmoothing algorithm type (SMA/EMA/JJMA etc.)
XLength100Smoothing algorithm period length
XPhase15Smoothing algorithm phase parameter
BandsPeriod100Bollinger Bands period
BandsDeviation2.0Bollinger Bands standard deviation multiplier
Smooth5Signal smoothing period
IPCPRICE_CLOSEApplied price type
UpLevel+25Upper band signal threshold
DnLevel-25Lower band signal threshold
SignalBar1Bar index for signal retrieval

Similar Mean Reversion EAs

Backtests are historical simulations and do not guarantee future results. Not financial advice.

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