Heikin Ashi Bollinger Bands Strategy

• 02/17/2025 at 11:26 PM #243965
  neddyboy

  Hi everyone,

  Wondered if anyone can help me.  I’m trying to build a strategy based around Heikin Ashi Candles and Bollinger bands.  To enter a buy position a red heikin ashi candle must close below the lower Bollinger band and then on the next green heikin candle open a buy of 0.5 contracts.  If the price goes against the position, if the entry conditions are met again with a minimum of a 10 point distance, enter another position of 0.1 etc.  Close all positions when the price meets the weighted position price + 5 points (or whatever set).  It should do the opposite for short positions.  This is what I have so far, apologies for my code, I’m a novice…

  Heikin Ashi Bollinger Strategy

  DEFPARAM CumulateOrders = True //Calculate Bollinger Bands BollMid = Average[20](close) BollUpper = BollingerUp[20](close) BollLower = BollingerDown[20](close) HaClose = (Open + High + Low + Close) / 4 if(barindex>2) then HaOpen = (HaOpen[1] + HaClose[1]) / 2 endif //Fixing HaHigh calculation TempHigh = max(HaOpen, HaClose) HaHigh = max(High, TempHigh) //Fixing HaLow calculation TempLow = min(HaOpen, HaClose) HaLow = min(Low, TempLow) //Define Heikin-Ashi color change HaGreen = (HaClose > HaOpen) HaRed = (HaClose < HaOpen) //Track entry prices ONCE EntryPrice = 0 ONCE PositionSize = 0 //Entry conditions LongCondition = (HaGreen AND HaClose > BollLower AND HaClose[1] <= BollLower) ShortCondition = (HaRed AND HaClose < BollUpper AND HaClose[1] >= BollUpper) //Re-entry conditions (add positions if price moves 10 points against the trade) MinMove = 10 AddLongCondition = (LongCondition AND abs(close - EntryPrice) >= MinMove) AddShortCondition = (ShortCondition AND abs(close - EntryPrice) >= MinMove) //Exit condition (close all positions at weighted average + 5 points) IF PositionSize > 0 THEN WeightedExitPrice = POSITIONPRICE ExitCondition = (close >= WeightedExitPrice) ELSE ExitCondition = 0 ENDIF //Execute trades IF LongCondition THEN BUY 0.5 CONTRACT AT MARKET EntryPrice = close PositionSize = PositionSize + 0.5 ENDIF IF ShortCondition THEN SELLSHORT 0.5 CONTRACT AT MARKET EntryPrice = close PositionSize = PositionSize + 0.5 ENDIF //Add positions if price moves against initial trade IF AddLongCondition THEN BUY 0.1 CONTRACT AT MARKET PositionSize = PositionSize + 0.1 ENDIF IF AddShortCondition THEN SELLSHORT 0.1 CONTRACT AT MARKET PositionSize = PositionSize + 0.1 ENDIF //Close all positions when reaching WeightedExitPrice IF ExitCondition THEN IF PositionSize > 0 THEN IF LONGONMARKET THEN SELL AT MARKET ELSE IF SHORTONMARKET THEN EXITSHORT AT MARKET ENDIF ENDIF ENDIF ENDIF

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  DEFPARAM CumulateOrders = True   //Calculate Bollinger Bands BollMid = Average[20](close) BollUpper = BollingerUp[20](close) BollLower = BollingerDown[20](close)   HaClose = (Open + High + Low + Close) / 4   if(barindex>2) then HaOpen = (HaOpen[1] + HaClose[1]) / 2 endif   //Fixing HaHigh calculation TempHigh = max(HaOpen, HaClose) HaHigh = max(High, TempHigh)   //Fixing HaLow calculation TempLow = min(HaOpen, HaClose) HaLow = min(Low, TempLow)   //Define Heikin-Ashi color change HaGreen = (HaClose > HaOpen) HaRed = (HaClose < HaOpen)   //Track entry prices ONCE EntryPrice = 0 ONCE PositionSize = 0   //Entry conditions LongCondition = (HaGreen AND HaClose > BollLower AND HaClose[1] <= BollLower) ShortCondition = (HaRed AND HaClose < BollUpper AND HaClose[1] >= BollUpper)   //Re-entry conditions (add positions if price moves 10 points against the trade) MinMove = 10 AddLongCondition = (LongCondition AND abs(close - EntryPrice) >= MinMove) AddShortCondition = (ShortCondition AND abs(close - EntryPrice) >= MinMove)   //Exit condition (close all positions at weighted average + 5 points) IF PositionSize > 0 THEN WeightedExitPrice = POSITIONPRICE ExitCondition = (close >= WeightedExitPrice) ELSE ExitCondition = 0 ENDIF   //Execute trades IF LongCondition THEN BUY 0.5 CONTRACT AT MARKET EntryPrice = close PositionSize = PositionSize + 0.5 ENDIF   IF ShortCondition THEN SELLSHORT 0.5 CONTRACT AT MARKET EntryPrice = close PositionSize = PositionSize + 0.5 ENDIF   //Add positions if price moves against initial trade IF AddLongCondition THEN BUY 0.1 CONTRACT AT MARKET PositionSize = PositionSize + 0.1 ENDIF   IF AddShortCondition THEN SELLSHORT 0.1 CONTRACT AT MARKET PositionSize = PositionSize + 0.1 ENDIF   //Close all positions when reaching WeightedExitPrice IF ExitCondition THEN IF PositionSize > 0 THEN IF LONGONMARKET THEN SELL AT MARKET ELSE IF SHORTONMARKET THEN EXITSHORT AT MARKET ENDIF ENDIF ENDIF ENDIF

  

  neddyboy

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  02/18/2025 at 9:57 AM #243974
  plbourse

  Bonjour

  Sorry, I replied in French, surely it is better in english as this is the english forum

  Some remarks

  • The condition in line  40 If PositionSize > 0 is it also valid for short trtades ?
    I would recommend to split Long and Short trades and to create ExitConditionLong and ExitConditionShort
    • If LongonMarket then… ExitConditionLong = (close >= WeightedExitPrice + 5) …
    • and If Shortonmarket then … sortie ExitConditionShort = (close <= WeightedExitPrice – 5)
  • In the block of exit orders, I would rcommend to reset after exit eht PositionSize to 0ne faut-il pas mettre après la sortie une ligne de réactualisation PositionSize = 0 dans la boucle
    IF ExitConditionLong THEN
    IF PositionSize > 0 THEN
    …. ordres
    PositionSize = 0
    endif
    endif
  • and the same for IF  ExitConditionShort

  Hope this will be helpful, let us exchange about the modified code

  1 user thanked author for this post.

  neddyboy

  

  plbourse

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  02/21/2025 at 3:57 PM #244164
  neddyboy

  Hi,

  Thanks for replying.  I’ve made some modifications to the code but I still can’t get it to open any positions.  Would anyone be able to help?

  DEFPARAM CumulateOrders = True //Calculate Bollinger Bands BollMid = BollingerUp[20](close) + BollingerDown[20](close) / 2 BollUpper = BollingerUp[20](close) BollLower = BollingerDown[20](close) PositionSize = 0.5 PositionIncrease = 0.5 Pointsgain = 5 heikinlow = 0 heikinhigh = 0 // Calculate Heikin-Ashi candles HaClose = (Open + High + Low + Close) / 4 HaOpen = (HaOpen[1] + HaClose[1]) / 2 HaHigh = max(HaOpen, HaClose) HaLow = min(HaOpen, HaClose) //Define Heikin-Ashi color change HaGreen = (HaClose > HaOpen) HaRed = (HaClose < HaOpen) //Heikin cross low If HaClose < BollLower then heikinlow = 1 ENDIF //Heikin cross High If HaClose > BollUpper then heikinhigh = 1 ENDIF //Buy entry conditions IF heikinlow = 1 and HaGreen THEN buy PositionSize CONTRACTS AT MARKET ENDIF //Sell entry conditions IF heikinhigh = 1 and HaRed THEN SELLSHORT PositionSize CONTRACTS AT MARKET ENDIF //Re-entry conditions (add positions if price moves 10 points against the trade) MinMove = 10 AddLongCondition = (LONGONMARKET AND abs(HaClose - TRADEPRICE) >= MinMove) AddShortCondition = (SHORTONMARKET AND abs(HaClose - TRADEPRICE) >= MinMove) //Exit conditions (close all positions at weighted average + points gain) IF PositionSize <> 0 THEN ExitConditionlong = (close >= (POSITIONPRICE + Pointsgain)) ENDIF IF PositionSize <> 0 THEN ExitConditionshort = (close <= (POSITIONPRICE - Pointsgain)) ENDIF //Add positions if price moves against initial trade IF AddLongCondition and heikinlow = 1 and HaGreen THEN BUY PositionIncrease CONTRACTS AT MARKET ENDIF IF AddShortCondition and heikinhigh = 1 and HaRed THEN SELLSHORT PositionIncrease CONTRACTS AT MARKET ENDIF //Close all positions when reaching WeightedExitPrice IF ExitConditionlong THEN SELL AT MARKET heikinlow = 0 ELSE IF SHORTONMARKET and ExitConditionshort then EXITSHORT AT MARKET heikinhigh = 0 ENDIF ENDIF

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  DEFPARAM CumulateOrders = True   //Calculate Bollinger Bands BollMid = BollingerUp[20](close) + BollingerDown[20](close) / 2 BollUpper = BollingerUp[20](close) BollLower = BollingerDown[20](close)   PositionSize = 0.5 PositionIncrease = 0.5 Pointsgain = 5   heikinlow = 0 heikinhigh = 0   // Calculate Heikin-Ashi candles HaClose = (Open + High + Low + Close) / 4 HaOpen = (HaOpen[1] + HaClose[1]) / 2 HaHigh = max(HaOpen, HaClose) HaLow = min(HaOpen, HaClose)   //Define Heikin-Ashi color change HaGreen = (HaClose > HaOpen) HaRed = (HaClose < HaOpen)   //Heikin cross low If HaClose < BollLower then heikinlow = 1 ENDIF   //Heikin cross High If HaClose > BollUpper then heikinhigh = 1 ENDIF   //Buy entry conditions IF heikinlow = 1 and HaGreen THEN buy PositionSize CONTRACTS AT MARKET ENDIF   //Sell entry conditions IF heikinhigh = 1 and HaRed THEN SELLSHORT PositionSize CONTRACTS AT MARKET ENDIF   //Re-entry conditions (add positions if price moves 10 points against the trade) MinMove = 10 AddLongCondition = (LONGONMARKET AND abs(HaClose - TRADEPRICE) >= MinMove) AddShortCondition = (SHORTONMARKET AND abs(HaClose - TRADEPRICE) >= MinMove)   //Exit conditions (close all positions at weighted average + points gain) IF PositionSize <> 0 THEN ExitConditionlong = (close >= (POSITIONPRICE + Pointsgain)) ENDIF   IF PositionSize <> 0 THEN ExitConditionshort = (close <= (POSITIONPRICE - Pointsgain)) ENDIF     //Add positions if price moves against initial trade IF AddLongCondition and heikinlow = 1 and HaGreen THEN BUY PositionIncrease CONTRACTS  AT MARKET ENDIF   IF AddShortCondition and heikinhigh = 1 and HaRed THEN SELLSHORT PositionIncrease CONTRACTS AT MARKET ENDIF   //Close all positions when reaching WeightedExitPrice IF ExitConditionlong THEN SELL AT MARKET heikinlow = 0 ELSE IF SHORTONMARKET and ExitConditionshort  then EXITSHORT AT MARKET heikinhigh = 0 ENDIF ENDIF

   

  

  neddyboy

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  02/21/2025 at 4:20 PM #244165
  GraHal

  Assuming you are testing in your Demo Account, try changing position sizes to a minimum of 1.

  

  GraHal

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  02/21/2025 at 4:38 PM #244171
  neddyboy

  Thanks for your reply. I just tried changing the size to 1 but unfortunately still no positions opened.

  

  neddyboy

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  02/21/2025 at 6:19 PM #244174
  GraHal

  You need below instead of your Line 17

  if(barindex>2) then HaOpen = (HaOpen[1] + HaClose[1]) / 2 endif

  1 2 3

  if(barindex>2) then HaOpen = (HaOpen[1] + HaClose[1]) / 2 endif

   

  

  GraHal

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