IF price is above the Bands enter SELL orders,
IF price is below the Bands enter BUY orders,
this creates a strategy based on mean reversion,
but the smart part that SQ4 could use is to calculate distance by pips or atr or anything else and make it smarter, for example,
now that we have those rules above and have a mean reversion strategy, our worst fear is a trend because in a trend it will open many orders and our margin will go down fast..,
the smart part is to make those following rules:
IF price is above the Bands enter SELL orders + (IF price gone 50 pips above the EntryPrice [which means a trend started..]) then switch to enter BUY orders rather then SELL orders,
IF price is below the Bands enter BUY orders + (IF price gone 50 pips below the EntryPrice [which means a trend started..]) then switch to enter SELL orders rather then BUY orders.
maybe the example in the picture is not the best, but many strategies will benefit from this approach :)