Bollinger Band: let's build a strategy together - page 3

[NGUYEN NGHIEM DUY]

Bollinger Bands & RSI 

This strategy uses a slower RSI with period 14 to sell when the RSI increases over the value of 55 (or to buy when the value falls below 45), with the classic Bollinger Bands strategy to sell when the price is above the upper Bollinger Band and falls below it (and to buy when the price is below the lower band and rises above it).

This strategy only triggers when both the RSI and the Bollinger Bands indicators are at the same time in the described overbought or oversold condition. In addition there are color alerts which can be deactivated.

* Bollinger Band (BB):

- Buy when the price is below the lower Bollinger Band

- Sell when the price is above the upper Bollinger Band

* RSI Filter (RSI):

- Only place buys when RSI is lower then value

- Only place sells when RSI is Higher then value

[Sergey Golubev]

Reimagining Classic Strategies (Part II): Bollinger Bands Breakouts

Bollinger Bands are versatile tools in trading strategies, effective for both trend following and identifying potential turning or reversal points. Technically, the indicator is made up from an exponential moving average (EMA) that smooths out the closing price of a security. This central line is enveloped by two additional lines, positioned above and below the EMA by typically 2 standard deviations.

In this article, we aim to empirically analyze the benefits of strategy from the ground up.We aim to help readers who may be considering using the Bollinger Bands to decide whether the strategy may be better suited for them. Furthermore, we will show how technical indicators may be used to guide AI models and hopefully develop more stable trading strategies.

[Evren Caglar]

Guys come'on.....

How you can make money on 2020s financial market with the tool developed developed 44 year ago...

We really need to discuss what we need to...

After trading more than 15 years, I will tell you, the algos those moving the price we see has nothing to do with any of the technical indicators.

[Conor Mcnamara]

Evren Caglar #:

Guys come'on.....

How you can make money on 2020s financial market with the tool developed developed 44 year ago...

We really need to discuss what we need to...

After trading more than 15 years, I will tell you, the algos those moving the price we see has nothing to do with any of the technical indicators.

These old-school indicators - Bollinger Bands, RSI, and so on are timeless. I'm reading your opinion, and of course you're entitled to your own opinion...but let me try to open your mind. The indicators do not care about the market algorithm. They are for hijacking it, and determining the trend. So why do we still talk about these old indicators today? Because they still work. The BB is for making a statistical measure of what's actually happening with the market volatility, and thus the standard deviation is useful. It can be used in confluence with other indicators to make valid trading decisions. So the quant indicators are reliable for trend detection no matter how old they are. Even with an EA that uses nothing more than a single EMA (less complex than the bollingers), I saw a 100% win rate on 25 trades taken.

[Juan Sebastian Vecchi]

Evren Caglar #:

Guys come'on.....

How you can make money on 2020s financial market with the tool developed developed 44 year ago...

We really need to discuss what we need to...

After trading more than 15 years, I will tell you, the algos those moving the price we see has nothing to do with any of the technical indicators.

The indicators weren't created with specific rules. Some of them just were popularized over the years but RSI, EMAs, Bollinger Bands, etc are just mere calculations. It's not that they come with the instruction to buy when RSI is below 30 and so on, because in that case obviously the market would've adapted and they would have lost edge quickly. That doesn't mean there cannot be some ways of using those calculations can give you edge for a while. That is PROVEN. It's also proven you can develop a strategy that uses those indicators that in Walk Forward history can show profitable results. Does that mean they'll work forever? Absolutely not. But that doesn't mean you can't win money using them, regardless of what the algos do.

[Sergey Golubev]

Implementing a Bollinger Bands Trading Strategy with MQL5: A Step-by-Step Guide

In the dynamic world of financial trading using of technical indicators can be of big impact. Bollinger Bands are one such effective technique that traders can use to determine possible entry and exit points based on price volatility and trend strength. This article explores automating trading choices with a Bollinger Bands trading technique utilizing the MQL5 programming language in MetaTrader 5.

[Conor Mcnamara]

Juan Sebastian #:
Does that mean they'll work forever? Absolutely not

They will work forever. If market volatility will be forever, then the standard deviation will be forever

[Frederic Metraux]

My guess is that the entry strategy is different when the price is in range than when trending?

[Frederic Metraux]

NGUYEN NGHIEM DUY #:

* Bollinger Band (BB):

- Buy when the price is below the lower Bollinger Band

- Sell when the price is above the upper Bollinger Band

* RSI Filter (RSI):

- Only place buys when RSI is lower then value

- Only place sells when RSI is Higher then value

This works when market is in range. When trending, we should enter differently:

* Bollinger Band (BB):

- Sell when the price is below the lower Bollinger Band

- Buy when the price is above the upper Bollinger Band

* RSI Filter (RSI):

- Only place buys when RSI is lower then value

- Only place sells when RSI is Higher then value

Correct me if I am wrong

[Ivan Titov]

IMHO it should be like this.

Flat:

Trend: