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Bollinger Band: let's build a strategy together

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samusmus1
321
samusmus1  
In this thread we will build our own Bollinger Band strategy by combining our heads together. Let's discuss:

DISCUSS:
- what do you think is the best way to recognize RANGED and BREAKOUT?
- what other indicators complement the Bollinger Band?
- what is in your experience the best timeframe for Bollinger Band?
- what do you confirm before entry?
- what conditions do you think should be met in the higher timeframe (before entry)?
- what Price Action do you think is best with Bollinger Band? (HnS, M, doji, other)

- what conditions (if/else) for our Bollinger Band strategy do you think could be helpful?

- what are the differences between volatile penetrations of the outer bands, common trend and correction penetrations?

- Please add as many links as possible

CONDITIONS:
- RANGED: buy on lowerband, sell on upperband
- BREAKOUT: buy on upperband, sell on lowerband

RULES:
- only discuss if it's topic related
- be nice to each other!
- explain your input if necessary
Sergey Golubev
Moderator
101674
Sergey Golubev  

Just for discussion (some general information):

  1. How to trade Extreme Bollinger Band Reversal in Forex - the video
  2. Bollinger bands - How To Master Bollinger Bands - the video 
  3. Bollinger Bands and Forex - the video 
  4. How to Trade Bollinger Bands - Stocks, Futures, Forex - the video 
  5. How to Day Trade Using Bollinger Bands - the video 
  6. How to Invest using Bollinger Bands part 2 - the video 
  7. Bollinger on Bollinger Bands Hardcover by John A. Bollinger - the book 

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How to Invest using Bollinger Bands

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Videos :

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samusmus1
321
samusmus1  

Thank you, Sergey!


I learnt a lot from your and other YouTube videos. To discuss this, I will point out my new ideas. What do you think?

- what do you think is the best way to recognize RANGED and BREAKOUT?

confirm with 5 indicators: overbought/oversold MFI, macd, rsi, %b and bandwidth 

confirm trend/breakout with bar technique: if candles are creeping on the outerband

- what other indicators complement the Bollinger Band?

MA rainbow to follow the trend. Use slow_MAs for risk.


- what is in your experience the best timeframe for Bollinger Band?

M5 with H1 or H1 with H4.


- what do you confirm before entry?

Trend, breakout and range.

- what conditions do you think should be met in the higher timeframe (before entry)?

Both in same direction, because you should trade in the direction of the main trend

Both timeframes on upper or lowerband is stronger signal.


- what Price Action do you think is best with Bollinger Band? (HnS, M, doji, other)

HnS not so much

M is recommended, especially third leg.

doji is unrecommended. Because market doesn't listen to doji like it used to.


- what conditions (if/else) for our Bollinger Band strategy do you think could be helpful?

if price close (instead of: hit), then trade

if squeeze, wait for confirmation breakout



- what are the differences between volatile penetrations of the outer bands, common trend and correction penetrations?

correction penetration aka small retracement/reversal usually doesn't close above outerband.

common trend: candles usually close above outerband, candles walk along upperband

penetration of outer bands: ?

I still don't know how to deal with this? how to deal with fake breakouts? how to deal with short-walking upwards?


Do you or anyone have tips for my questions?

As the starter of this thread I expect many comments/ideas from you traders in here. I am looking for tips that help us trade better with Bollinger Band. Any tips are welcome.

Alp.Oguz
93
Alp.Oguz  

Just a general comment:


Developing a successful strategy in any field always starts with asking the correct questions.

   Like the experienced doctors successfully diagnose the illnesses of their patients only by starting with correct questions.

And ... learning to ask correct questions can take many many years.

   Like the good doctors spend tens of years of their lives with patients at hospitals to be so.

ghartimagar
18
ghartimagar  

Hi samusmus1, I too interested in bb strategy, i wrote few EAs based on bb tf 5 to tf 1 hour BB 50-3. but most of them stuck in break even point meaning  ea did not  make any profit not any losses. when i add other moving indis such as macd mas, all indis giving opposite signals, am sure there has to be some settings with indis and we may get 60 40% profit ratio which is quite good. Guys let me  know if you have best idea so i   can write ea and test togather. 

larryxx
6
larryxx  
Guys, have you heard of bbma? Trading Bollinger bands using moving  averages.. trading system developed by some Malaysian guy so most of the materials are in malay. The system seems to be pretty successful and it would be interesting to see if an EA can be developed for this.
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