Beware of such wreckless money management - it will lead to the destruction of your account.
Do you mind sharing win\loss ratios, etc?
MM is the important factor beside trading system
What we need in trading is also stability, can we trade affectively in for long period of time. Some traders can make $600 in a week, but on the following week ge lost everything. That's not what we need, but stability.
You were lucky, that's all.
This signal you trade is a good signal only when confirmed with a stronger Support or Resistance level, or a Chart pattern that confirms the Bollinger Support or Resistance. You also need to confirm that the Middle band of Bollinger is FLAT (not trending), to confirm that you are in a range.
Bottom line, this system is good for trading ranges. If you know how to avoid trend periods and know to spot ranges you can make many profits using this system. Otherwise, beware.
thank you so much for your system.. ill try it tomorrow.. very good strategy..
The strategy shared here by sitestuff is an excellent trading entry technique as part of a bigger trading plan. Of and by itself it has several weaknesses, but as part of a complete trading plan it has great potential. For example, only trade on the 15 minute chart in the direction of the 4 hour trend or market flow. Apply Fibonacci levels and only trade when:
a. Fibonacci level is hit
b. Candle closes outside the bollinger band and stochastics shows overbought/oversold depending on the trend
c. Candle that follows that which closed outside the bollinger band closes at least past 50% of the previous candle.
Risk management is key. Use a fixed stop loss of 15 to 25 pips below the low of the candle that closed outside the bollinger band if buying and vice versa for selling.
The point here is that this is only an "entry technique" that if included as part of a trading plan can produce consistently profitable trades.
I do agree with you that this strategy should be developed further... It has very good and low risk entry points... Just around the turning point themselves...
Howzit guys - I'm back with a new strategy and I'm confident that this is what I've been looking for. Not sharing anything at this stage, however you can follow me as I demo until end Jan 2011 before I open my live account. I can tell you this - much less indicators and much more support/resistance together with trend. Here is the link to my journal - https://www.mql5.com/en/forum/198920
nice to be here, hope to learn more from you guys. Am still a novice in this trading.
Just wanna know the Bollinger set up if its Close, Low or High in terms of the strategy you are using eg. P50, Deviation 2, Color Red - Close, high or low. Thanks