Join waitlist
The books... not free though
10 Strategier Som Slår BörsenSvenska10 Strategier Som Slår Börsen10 Strategies That Beat the MarketEnglish10 Strategies That Beat the MarketProRealTime Coding Made SimpleEnglishProRealTime Coding Made Simple
600+StatisticsMarket statistics and edges1,327StrategiesBacktested strategy library18Research papersThe study behind the algos301DocsProBuilder coding reference27Algo development programCourses and lessons24Everything here feeds the 24 algosSee the algos
Strategies / Breakout / Bollinger Band Expansion Breakout

Bollinger Band Expansion Breakout

The strategy buys when a green candle closes above the upper Bollinger Band while both bands are widening, and sells short on the mirror setup below the lower band. Positions are closed when the close moves back through the 20-period average.

BreakoutLong & shortSwingUSD/JPY1 hour
n/aProfit factor
396,320Net profit USD
35.98%Win rate
3,488Trades
-234,060Max drawdown
114Avg trade

Best run of 5. USD/JPY, 1 hour, spread 1, from run sweeps:2026-10-04-USDJPY-1h-opt.tsv:5.

Entry rules, long

  2. Also requires the upper band rising, the lower band falling, and high minus 0.7 times the high-low range above the upper band.
  3. No buy is placed while a long is open.

Entry rules, short

  2. Also requires the lower band falling, upper band rising, and low minus 0.7 times the high-low range below the lower band.
  3. No short is placed while a short is open.

Exit rules

  2. Close the short when the close rises above the 20-period average.
  3. An opposite signal reverses the position.

Test conditions

PeriodUp to 2026-10-04
InstrumentUSD/JPY, 1 hour
Spread1 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run1 hourn/a 3,48835.98396,320 USD-234,060
USD/JPYDailyn/a 28440.142,231,250 USD-616,030
EUR/USDDailyn/a 28642.6671,902 USD-25,548
Silver4 hoursn/a 75936.5022,927 USD-13,542
GBP/USDDailyn/a 32537.546,979 USD-6,336

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Bollinger Band Expansion Breakout
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[20](close)
dev = 2.0 * STD[20](close)
upper = basis + dev
lower = basis - dev

24 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Bollinger Bands
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 234,060 USD is large next to the net profit of 396,320 USD.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Bollinger Band Expansion Breakout in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 5 market and timeframe combinations. The best run by trade count was USD/JPY, 1 hour, with 3,488 trades.

How large was the drawdown?

The best run had a maximum drawdown of 234,060 USD at the tested position size, against a net result of 396,320 USD.

Does it trade long, short or both?

It trades both long and short.

Related

Strategies like this one

Bollinger Band Reversion To Basis

Uses the same indicator.

2.33 PF · 4,691 trades

Trend Surfer

Best run on the same market, USD/JPY.

1.04 PF · 10,813 trades

Big Candle Breakout

Also a breakout strategy.

n/a PF · 4,636 trades

Want strategies that are already part of a live portfolio? Join the ProRealAlgos waitlist.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs