My idea about Bollinger Band Squeeze - Any suggestions are welcomed
Would you want a "trailing entry" to go with the "trailing stop"? Essentially each movement in the trailing stop is mirrored by the entry system. If the second trade has even a slightly greater than 50% success ratio, I'd recommend doubling the lotsize on the second trade.
I think what you're talking about is fairly clear, but I'm not certain so I'll rephrase. I haven't done a Bollinger Band based entry system before, so my confusion will likely lead to errors.
indicator: Bollinger Band (aka Bands.mq4)
BandsPeriod = ?, Bandsshift=0, BandsDeviations = 3.0
variables: LOTSIZE, TP, SL, TS
1. Buy LOTSIZE/3 *3 trades when Bid > BBand Value2 (from signal), TP = none, SL=23, TS=45
2. Sell LOTSIZE/3 *3 trades when Ask < BBand Value3 (from signal), TP = none, SL=23, TS=45
3. Manage trades using BBand2 with BandsDeviations=5.0:
a. Close first trade
b. SL=Open-10*Point
4. BBand3 with BandsDeviations=10.0:
a. Close second trade
b. SL=Open-25*point
5. BBand3 with BandsDeviations=15.0:
a. Close third trade
6. Timefilter
7. Secondary Trade with ?? Rules applied.
Of course, I'd recommend the BandsDeviations value to be configurable, along with the pip values for exit. That said, I don't see price come near BD=5.0 unless you're refering to Value2 and Value3 at the time the BBand was taken. Bollinger Bands is fundamentally a moving average, and I personaly disbelieve that averages have any correlation to future price action. Now when there is a severe *tightening* of the bands, it implies something different... a price breakout is occurring soon because the price can't stay the same forever. When it does move, how do you know which way? BBands gets tested a lot, and it often doesn't break in the predicted direction. Mostly I see it bounce around inside the channel, but CCI is better at predicting and trading channels in general.
Will it work? I have no idea but I'm not motivated to write code to find out.
Can you please post mq4 version of the indicators.
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Hello dear traders.
Here are attached an indicator and an expert for MT3. I think that they fully discribe my idea about BBands Squeeze. Please attach them on 30 min TF and do a test / the best performer is CHF with original settings/. In short:
1. Buy/Sell 3 lots when indicator Bollinger BWidth passes thru 3 % line from below and price is above/below middle Bollinger band. Initial stop 23+ pips.
2. If long: First lot out when Bollinger BWidth passes thru 5% and move stoploss on remaining lots to -10pips from entry price, second lot out at 10% line and move stoploss to Bid-25pips, third lot out at 15% line. Reverse for shorts. Trailing stop 45+ pips.
3. Trades are taken 7-17 GMT.
Most of You know that often there are false breakouts from the squeezed bands. My suggestion is to enter in the opposite direction at initial stoploss point if the price is reversing direction, but only once per signal.
The results of tests are promising, but I couldn't program an expert to close those three lots at different levels in MT3. I wold like somebody to program this into MT4and share it with us to see the full potencial of the system.
Thank You in advance and many pips in trading.