Bollinger Bands Modified (Stormer)

9 jul 2023

This strategy is based and shown by trader and investor Alexandre Wolwacz "Stormer".

Overview
The strategy uses two indicators Bollinger Bands and EMA (optional for EMA).
Calculates Bollinger Bands, EMA, highest high, and lowest low values based on the input parameters, evaluating the conditions to determine potential long and short entry signals.
The conditions include checks for crossovers and crossunders of the price with the upper and lower Bollinger Bands, as well as the position of the price relative to the EMA.
The script also incorporates the option to add an inside bar pattern check for additional information.

Entry Position
Long Position:

• Price cross over the superior band of bollinger bands.
  
• The EMA is used to add support for trend analysis, it is an optional input, when used, it checks if price is above EMA.
  

Short Position:

• Price cross under the inferior band of bollinger bands.
  
• The EMA is used to add support for trend analysis, it is an optional input, when used, it checks if price is under EMA.
  

Risk Management
Stop Loss:

• The stop loss is calculated based on the input highest high (for short position) and lowest low (for long position).
  
• It gets the length based on the input from the last candles to set which is the highest high and which is the lowest low.
  

Take Profit:

• According to the author, the profit target should be at least 1:1.6 the risk, so to have the strategy mathematically positive.
  
• The profit target is configured input, can be increased or decreased.
  
• It calculates the take profit based on the price of the stop loss with the profit target input.