This mean-reversion strategy plots Bollinger Bands and a long-term moving average directly on the price chart. It enters trades when price candles penetrate the outer Bollinger Bands beyond a user-defined body percentage, anticipating a price reversal. Entries
Strategy · Pine Script v4 · On the chart
Bollinger Band with Fib Golden Ratio (0.618)
This strategy combines Volume Weighted Moving Average (VWMA) Bollinger Bands with 200-period and 50-period Exponential Moving Averages (EMAs).
GitHub stars106on the repository
Pine versionv4older, still runs
Lines of code31
Settings4inputs
LicenceGPL-3.0
Last update2 years ago18 Sep 2024
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
31 lines of Pine Script v4 from Bollinger Band with Fib Golden Ratio (0.618).pine, published under GPL-3.0. Keep the author's credit and licence lines when you reuse it.
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © mohanee
//@version=4
strategy(title="Bollinger Band with Fib Golden Ratio (0.618)", shorttitle="Bollinger Band with Fib Golden Ratio" , overlay=true, pyramiding=1, default_qty_type=strategy.percent_of_equity, default_qty_value=20, initial_capital=10000, currency=currency.USD)
length = input(50,title="BB Length" , minval=1)
src1 = input(hlc3, title="Source")
//mult1 = input(1.33, minval=0.001, maxval=50)
mult = input(1.5,title="multplier", minval=0.001, maxval=50)
stopLoss=input(5,title="Stop Loss",minval=1)
basis = vwma(src1, length)
dev = mult * stdev(src1, length)
//dev3 = mult3 * stdev(src, length)
upper_618= basis + (0.618*dev)
lower_618= basis - (0.618*dev)
//lower_618_dev3= basis - (0.618*dev3)
plot_upper618= plot(upper_618, color=color.purple, linewidth=2, title="0.618")
plot(basis, color=color.purple,style=plot.style_circles, linewidth=2)
plot_lower618= plot(lower_618, color=color.purple, linewidth=2, title="0.618 entry")
//plot_lower618_dev3= plot(lower_618_dev3, color=color.red, linewidth=1, title="0.618 stop")
//plot_lower618= plot(lower_618, color=color.purple, linewidth=1, title="0.618 entry")
ema200=ema(close,200)
ema50=ema(close,50)
plot (ema200, title="ema200", color=color.orange, linewidth=2)
plot (ema50, title="ema50", color=color.blue , linewidth=2)
longCondition= ema50 > ema200
strategy.entry(id="BB_Fib618", long=true, when = longCondition and ( close < lower_618 or low <= lower_618) )
strategy.close(id="BB_Fib618", comment="points="+tostring(close - strategy.position_avg_price, "###.##") , when = strategy.position_size >= 1 and crossover(close,upper_618 ))
//stoploss exit
stopLossVal = strategy.position_size>=1 ? strategy.position_avg_price * ( 1 - (stopLoss/100) ) : 0.00
strategy.close(id="BB_Fib618", comment="SL="+tostring(close - strategy.position_avg_price, "###.##"), when=abs(strategy.position_size)>=1 and close < stopLossVal ) //and close > strategy.position_avg_price )
Expand (51 lines)
Overview
Bollinger Band with Fib Golden Ratio (0.618) identifies long trade opportunities when the 50 EMA is above the 200 EMA and price falls to or below the lower Fibonacci 0.618 Bollinger Band. Positions are exited when price crosses above the upper Fibonacci 0.618 band or hits a percentage-based stop loss. Plotted directly on the price chart, user settings control the BB length, multiplier, source, and stop loss percentage.
- Fibonacci 0.618 Bollinger Bands
- VWMA basis calculation
- EMA trend filter
- Percentage-based stop loss
Details
Published by
hasnocool on GitHub
Code credit
mohanee, as written in the script's header
Type
Strategy, Pine Script v4
Draws
On the price chart
Category
Trend, Volatility & bands, Moving averages, Mean reversion
Markets
Any symbol
Timeframes
Any timeframe
Risk Notes
- The strategy enters trades without a stop loss
Topics
analysisbtcusdtcryptocurrencydatapandaspythonsimulationtradingtradingview
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| BB Length | int | 50 | length |
| Source | source | hlc3 | src1 |
| multplier | float | 1.5 | mult |
| Stop Loss | int | 5 | stopLoss |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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