Bollinger Band Options Trading Strategy

Bollinger Band Options Trading Strategy (BBOTS)

Overview
The Bollinger Band Options Trading Strategy (BBOTS) is a high-precision, mean-reversion and momentum-capture system designed specifically for liquid assets like Options, Equities, and Forex. Built on Pine Script v6, this strategy utilizes dual Bollinger Band sets—one for surgical entries and another for dynamic profit targeting—to exploit market volatility while maintaining strict capital preservation.

Key Features
1. Dual-Band Logic
Unlike standard strategies that use a single set of bands, BBOTS separates Entry Bands from TP (Take Profit) Bands. This allows you to enter on tight volatility constraints but exit based on wider, trend-confirming targets.

2. Advanced Entry Mechanics

Price Filter: Protects your capital by ensuring trades only execute within a specific price range (essential for options premium consistency).

3. Professional Risk Management
This script features one of the most comprehensive risk management modules available:

Multi-Stop Logic: Toggle between "Tightest" or "Priority" modes when using multiple stop-loss types.

Trailing Activation: A "Profit Threshold" feature that activates a trailing stop only after the trade has moved significantly into the green.

Dynamic Exit Rules: Includes ATR-based stops, fixed percentage SL/TP, and Risk-Reward Ratio (R:R) automation.

4. Basis TP & Volatility Filter
The strategy includes a unique Basis TP feature with a Band Width Threshold. It intelligently decides whether to take profit at the Middle Band (Basis) or hold for the opposite band, based on whether the current market volatility (Band Width) justifies the risk.

5. Institutional Session Controls
Includes a built-in session filter to avoid "low-liquidity" noise and an optional "Auto-Exit" at session close to prevent overnight gap risk.