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Bollinger Band Scalping

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kasio kasio
55
kasio kasio  

Hi all,

With all these different systems and complicated EAs, it seems that the good old simple techniques are best.

My technique: Scalping using Bollinger Bands.

What I've been doing is very simple and I figure if there is an EA for this, it could be quite profitable. Money management seems to be critical here.

The basis for the EA:

1) 5 Min Timeframe -- EUR/USD (somewhat volatile and small spread)

2) Bollinger Band Set at 20 and 2SD (the only indicator on chart)

3) Use 10% of account only

4) Wait for price to close outside the 2SD BB then set your entrance at 2pips farther away from the previous close candle. So if it closes below the BB 2sd line, set your entrance at 2 pips below that. (see attachment). Do the opposite if it closes above the 2SD line.

5) TP set to 7 (5pip profit assuming a 2pip spread), SL to 10pips

That's it. Very simple and we've all come across this before but it works. The reason we set the SL to 10 pips is to allow a bit of breathing room but not enough to wipe us out. If it's gonna move in our direction, then 10pip breathing room is enough.

I've been playing with this in a demo account and have been hitting about 3 out of every 4. With a 2x SL it means that my profit percent is about 50%.

The problem with this is it is so time consuming sitting and watching. If anyone can build an EA to do this, it would be great. If you set the BB to 3sd instead of 2, more success but fewer set-ups.

Can anyone build such a simple EA with a few external inputs so we can all tweak them here.

Inputs:

1) # of Lots

2) Standard Dev of BB

3) Amount of pips want to Scalp for TP

4) Amount of pips for SL

5) How much below/above the closing price do you want to enter. (in the example above, I said enter 2pips below the closing price)

Looking forward to everyones input and potentially a helpful programmer

Regards,

Kasio

Files:
bb.jpg 60 kb
CodeMeister
52
CodeMeister  

I Have One

I worked on a similar EA 5 months ago and couldn't make it worthwhile. The problem was when the market started trending, the entries and stops were frequently hit. It had good performance in sideways markets. This was tested on 30M and 1H time frames. I don't know how it would perform on 5M. But if you controlled it and removed it during big moves, perhaps it would do better.

I can't remember its features but I believe they do most of what you describe. I don't want to post it here, but you can PM me. I do expect you to provide me with the settings and test results in return.

serulink
178
serulink  

good idea

in addition, you can add the parameter of time (EA only works in the market are small movements, such as session asia)

regards

kasio kasio
55
kasio kasio  

Ea

Hi CodeMeister,

I am unable to send a pm as I'm a new user and need to post a minimum amount. Please email me at Kasio79@gmail.com.

I will test out the EA using my system, and tweak a bit more -- I'll certainly send you a copy of the set file that I use and of course the account results.

Cheers.

Kasio

Pablo A
8
Pablo A  
kasio kasio
55
kasio kasio  

I posted this on Friday and the markets are closed.

I'll let everyone know about my results when I start.

Thanks for the input.

yazidane
3
yazidane  

i already create my ea base on bollinger band...really awesome...the band is really useful for me to know when the market want to reverse or trending...

the ea is still on testing and the result is here yazidane.mt4live.com

marcoaaguiar
8
marcoaaguiar  

ive done a BB based EA once, ive got some resonable result.

reading this post maybe i'll reopen the project

post next if i got new results.

ps: the problem was filter the trend. i had not tried willians %r neither atr.

trade in asia session is good idea also.

kbonito
3
kbonito  

Trend scalping multi timeframe

I have been working on a system where I have been getting very good results. I used to have all kinds of indicators but I have found it is all a pipe dream to say the least. I use basic settings(tweaked a little) and always update the trends as they happen during a sideways market. It really works well during consolidation periods. I really enjoy the 5 min and the 1 min on this one.It is not the kind of system that you buy only when the indicator looks favorable. You have to use wisdom and look at the overall trend by drawing trendlines as you move along. However, if you want to buy when the indicator says go, just give yourself some trading rules( amount of risk, when to get out, ect). Let me know if you want to get into developing an EA with it. I don't have much experience in developing, but trading is fun and not a chore when done right.

I attached some pics to give you an idea of what I am speaking about. It is simple, yet effective.

tampa
2045
tampa  

BB pro unlimited (expert)

bb_pro_unlimited.zip

Files:
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