Bollinger Bands is a widely-used cTrader technical indicator that utilizes standard deviation to establish a band of potential support and resistance levels, where the concept is part of a broader framework called a volatility channel.
A volatility channel plots lines above and below a central price measure. These lines, also referred to as envelopes or bands, expand or contract based on the market's level of volatility. Bollinger Bands specifically measure market volatility and offer valuable insights, including:
1. Identifying trend continuation or reversal.
2. Recognizing periods of market consolidation.
3. Anticipating significant volatility breakouts in the future.
4. Identifying potential market tops or bottoms and estimating price targets.
The Bollinger Band indicator consists of three lines, the middle line represents a Simple Moving Average (SMA) with a default value of 20 and the upper and lower bands are positioned two standard deviations away from the SMA.
How Does the cBot open & close trades?
This sample starter kit cBot will open a buy trade and close a sell trade when the following conditions are met:
The current candle's low price <= current Bollinger band bottom value
AND the previous candle's low price > Previous Bollinger band bottom value
It will also open a sell trade and close a buy trade when the following conditions are met:
The current candle's high price >= current Bollinger band top value
AND the previous candle's high price < Previous Bollinger band top value
Bollinger Bands cBot is provided with full source code by Spotware.com
How To View The Source Code
To view the source code for this cBot, you will first need to make sure you have downloaded and installed cTrader Desktop, you can also scroll to the bottom of this page for instructions on how to install the cBot. Once installed you will have the cTrader application open, next you need to navigate to the Automate application and click on the name of the cBot, the source should show in the right-hand window.
If you need more help watch a video tutorial on how to use cTrader Automate.
How to Attach Indicator to Chart
You do not need to attach the Bollinger Bands indicator to your chart when you run the cBot, but it is a good idea to visually see the indicator to check your trade rules for opening and closing trades and any risk management.
Learn Algorithmic Trading
In this instructional guide, we aim to assist you in acquiring the necessary skills to engage in market trading through automated trading strategies (cBots) using the cTrader Desktop trading platform. By the conclusion of this tutorial, you will gain the confidence to employ a cTrader cBot alongside the Algo application of cTrader, enabling you to automatically execute and handle your market orders. This course is designed to familiarize novice traders with the fundamental principles of algorithmic trading utilizing the cTrader platform.
Learn Microsoft C# for Algo Trading
If you are new to coding your own cTrader cBot for automated trading the following Microsoft C# course will help you modify the starter kit cBot in this download to add new features for your own personal trading strategy.
Algorithmic Trading Facts
A significant number of traders venture into algorithmic trading with the misconception that they have discovered a foolproof strategy that guarantees effortless wealth. However, this notion is far from reality. It is crucial to read this article, as it can save you valuable time and money.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
If you have any questions, please first search our coding help forum for the answer, if you cannot find it, post a new question.
Need Coding Help?
We can help you modify this cBot for your own personal trading strategy, contact our team for a quote.
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