Strategies / Breakout / Bollinger Band Trend Breakout

Bollinger Band Trend Breakout

Buys when the close crosses above the upper 20-period Bollinger Band while the 200-period SMA is not falling, and sells short on the mirror cross below the lower band while it is falling. Each trade has a 0.5% stop and a 1.0% target.

BreakoutLong & shortSwingEUR/USDDaily

1.20Profit factor

34,467Net profit USD

37.63%Win rate

481Trades

-8,200Max drawdown

71.66Avg trade

Best run of 10. EUR/USD, Daily, spread 1, from run pf:2026-10-05-EURUSD-D.tsv:2.

Entry rules, long

The 200-period SMA is not lower than on the previous bar.

Entry rules, short

The 200-period SMA is lower than on the previous bar.

Exit rules

Each trade has a stop 0.5% and a target 1.0% from the entry price.

Test conditions

Period	Up to 2026-10-05
Instrument	EUR/USD, Daily
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-05

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
EUR/USDBest run	Daily	1.20	481	37.63	34,467 USD	-8,200
USD/JPY	1 hour	n/a	2,597	33.54	504,800 USD	-256,350
USD/JPY	30 min	n/a	2,831	31.61	405,000 USD	-248,380
USD/JPY	Daily	n/a	457	34.79	196,060 USD	-160,790
EUR/USD	4 hours	n/a	1,192	35.49	47,599 USD	-18,982
GBP/USD	4 hours	n/a	1,178	34.47	4,686 USD	-2,545
DAX 40	1 hour	n/a	3,035	34.14	4,557 EUR	-3,209
DAX 40	4 hours	n/a	980	34.80	2,511 EUR	-2,311
Gold	5 min	n/a	2,818	29.95	1,186 EUR	-591
Gold	4 hours	n/a	1,082	34.38	858 EUR	-237

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

sma = Average[200](close)

30 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
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".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Bollinger BandsSMAStandard Deviation

Read this firstKnown weaknesses2 points

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Bollinger Band Trend 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 10 market and timeframe combinations. The best run was EUR/USD, Daily, with a profit factor of 1.20 over 481 trades.

How large was the drawdown?

The best run had a maximum drawdown of 8,200 USD at the tested position size, against a net result of 34,467 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Slow MACD Slope

Best run on the same market, EUR/USD.

6.80 PF · 7,305 trades

Reversal Pattern With Daily Pivot Levels

Also a breakout strategy.

1.21 PF · 1,506 trades

See how ProRealAlgos combines strategies like this into one automated portfolio.

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.com Stats Docs