Long Bollinger Bands Strategy

Long Bollinger Bands Strategy (XAUUSD) — Lower Band Reversal + 4-Step Scaling + Daily DD Guard

Long Bollinger Bands Strategy is a long-only Bollinger Bands reversal/mean-reversion strategy designed mainly for XAUUSD. It looks for a bearish push below the Lower Band followed by a bullish reclaim on candle close, then optionally scales in up to 4 entries (E1–E4) as price pulls back.
1) Risk Management & Position Sizing

The strategy includes a USD-based risk input: Risk per setup (USD).

It automatically calculates position size using the average SL distance across the 4-entry structure, then distributes size across entries with built-in weighting.

BackTest Lot checkbox:

OFF (default): uses normalized sizing (qty divided by 100)

ON: uses raw qty for backtesting workflows

2) SL/TP Management (Locked SL + Optional Range TP)

Stop Loss (SL): based on SL distance (pips from entry) from E1.

Take Profit (TP):

If TP (pips) > 0: fixed pip TP from E1

If TP (pips) = 0: TP is based on the signal candle range (high–low)

SL Lock: once the stop is tightened, it never loosens again (only moves in a protective direction) until the trade closes.

3) Daily Drawdown Protection

Tracks equity by day and stops opening new positions once Max daily drawdown (USD) is reached for that day.

4) Notes / Disclaimer

This strategy does not use volume, RSI, fundamentals, news filters, or session filters. Users should apply discretion and consider confirmations from other tools and market context. Results depend on symbol settings, spread, commission, and volatility regime. Always forward-test before using in live trading.

Designed for XAUUSD. The script uses an internal pip conversion (pipSize = 0.1) consistent with common gold quoting; verify your broker’s pip definition for best alignment.

5) Suggested Usage

Best used during volatile conditions or after a clear lower-band sweep and reclaim.

Consider pairing with trend filters or higher-timeframe bias.

6) Release Notes

Initial release: Long-only BB reclaim logic with 4-step scaling

Added: SL/TP lock logic and visual SL/TP lines

Added: Daily drawdown guard and backtest lot toggle XAUUSD