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Version: 3.0

Example D2: Indicator value for initial stop loss and initial take profit

caution

This is not a ready-to-use trading strategy. A trading strategy requires adjustment to the timeframe and symbol, along with thorough backtesting. The example is intended as a foundation for your own custom strategy and to help you get familiar with the Expert Advisor Builder web application. To import and use an example, please follow the instructions provided here.

Description​

This example uses Bollinger Bands to dynamically set both stop loss and take profit levels. The lower band determines stop loss placement while the upper band sets take profit targets, creating a statistically-based range for each trade. This adaptive approach automatically adjusts to market volatility without manual intervention.

Using indicators for both levels ensures consistent risk-reward relationships regardless of market conditions. As Bollinger Bands expand during volatile periods, both stops and targets widen proportionally. During calm periods, they contract together, maintaining strategic balance.

The MACD provides entry timing while Bollinger Bands handle exit levels entirely. This separation of concerns creates a robust system where entry and exit logic operate independently, allowing optimization of each component without affecting the other.

Recreate the Example​

You can either import this example directly or set it up manually. To manually replicate the trading module, make sure a newly added module includes the following key settings and that the professional mode is activated:

Trade Basics

  • Operation type = Long

Signal Generation - Indicators (MACD Main line)

  • Signal in use = On
  • Signal used for = Entry
  • Selected indicator = MACD
  • Line index = Main line
  • Draw in chart = On
  • Drawing slot = 1

Signal Generation - Indicators (MACD Signal line)

  • Signal in use = On
  • Signal used for = Entry
  • Selected indicator = MACD
  • Line index = Signal line
  • Draw in chart = On
  • Drawing slot = 2

Signal Generation - Indicators (BB Lower)

  • Signal in use = On
  • Signal used for = Forward
  • Selected indicator = BB
  • Line index = Lower
  • Draw in chart = On
  • Drawing slot = 3

Signal Generation - Indicators (BB Upper)

  • Signal in use = On
  • Signal used for = Forward
  • Selected indicator = BB
  • Line index = Upper
  • Draw in chart = On
  • Drawing slot = 4

Signal Generation - Indicator Combinations (MACD Main line & MACD Signal line)

  • Signal in use = On
  • Signal used for = Entry
  • Input indicator 1 = MACD (Main line)
  • Input indicator 2 = MACD (Signal line)
  • Value relation = Value x cross value x

Initial Stop Loss

  • Selection = Indicator value
  • Used indicator = BB (Lower)

Initial Take Profit

  • Selection = Indicator value
  • Used indicator = BB (Upper)

Screenshots​

Example D2: Indicator value for initial stop loss and initial take profit.webp