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Is it common to Buy Above and Sell Bellow with Bollinger bands ? - page 3

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Dominik Christian Egert #:
Prop firms have rules, but they are not brokers....

I don't know of any broker imposing trading rules on their users, except for EA usage, maybe.

And I do not consider Symbol or Account specs to be broker rules in this sense.

Prop firm care about trading style because if they have too much profitable traders they will not survive and pay them...

Prop firm hope to have more loosers traders to sustain their business and grow their capital, brokers hope to have more profitable traders to gain commissions for longer time... 

A very big difference.
Fabio Cavalloni #:
Margin call with 1 trade means to use a gambler money management, it will be a failure regardless of the strategy!

It doesn't have to be one trade, it can can happen by continued losing trades. Sure there might be some wins with this, but you depend on the market to be on an upward shift or else this simply won't work.

what you can do by being too friendly is you can encourage a dangerous trading system. I applaud your politeness however

make better gains by keeping it simple:


phade #:

It doesn't have to be one trade, it can can happen by continued losing trades. Sure there might be some wins with this, but you depend on the market to be on an upward shift or else this simply won't work.

As long as any trade risks only a little % of capital, margin call is almost impossible...

Anyway I agree with you that trading in that way will be totally counter intuitive, suffering drawdown in most of cases.. but it do not means that it's not possible to build a profitable strategy with that approach 
phade #:

It doesn't have to be one trade, it can can happen by continued losing trades. Sure there might be some wins with this, but you depend on the market to be on an upward shift or else this simply won't work.

Margin call = Funds are already very low.

Margin Stop = Funds are used up.

When reaching this state, you are already releafed of your funds.
Fabio Cavalloni #:
Prop firm care about trading style because if they have too much profitable traders they will not survive and pay them...

Prop firm hope to have more loosers traders to sustain their business and grow their capital, brokers hope to have more profitable traders to gain commissions for longer time... 

A very big difference.
I disagree.

This is not how PropFirms work. And this is not how commission works.

PropFirms bridge the gap between Investors and traders.

Commission is charged immediately. Same goes for spread. Broker doesn't care.

PropFirms make money on filtering out profitable traders from the crowd and copying them. They make their money and they can pay you on top of that. At least the reputable PropFirms.

Believe it or not, but no PropFirm would sustain from the challenges payouts in the first place.

And if you look at how they work, at their business model, you would see, it's simple math.
Dominik Christian Egert #:
Margin call = Funds are already very low.

Margin Stop = Funds are used up.

When reaching this state, you are already releafed if your funds.

Yes but the point is that it is not a good place to be. However, it is ok when we're learning from mistake. 

Why argue what could and could not be?

Write an indicator that counts how often the prices break out above BB-High or below BB-Low, and whether
then a) a TP (e.g.: open +/- ( BB-High - BB-Low )*0.5) or b) SL (the respective other channel limit) is reached and c) the respective profit or loss.

Run this for different symbols and time frames, make it a table and post it here - I think, that would interest everyone and end fruitless discussions!

Carl Schreiber #:

Why argue what could and could not be?

Write an indicator that counts how often the prices break out above BB-High or below BB-Low, and whether
then a) a TP (e.g.: open +/- ( BB-High - BB-Low )*0.5) or b) SL (the respective other channel limit) is reached and c) the respective profit or loss.

Run this for different symbols and time frames, make it a table and post it here - I think, that would interest everyone and end fruitless discussions!

Would this really be interesting? It's common sense that you can lose a lot of trades by hoping price breaks out above BB high


Dominik Christian Egert #:
I disagree.

This is not how PropFirms work. And this is not how commission works.

PropFirms bridge the gap between Investors and traders.

Commission is charged immediately. Same goes for spread. Broker doesn't care.

PropFirms make money on filtering out profitable traders from the crowd and copying them. They make their money and they can pay you on top of that. At least the reputable PropFirms.

Believe it or not, but no PropFirm would sustain from the challenges payouts in the first place.

And if you look at how they work, at their business model, you would see, it's simple math.
This is what they claim to be and what (unfortunately) most of people think about them... It's surely a good fairy tale, the best they can tell to make them believeble.

They are earning money from people failing challenges and trading demo accounts, you can also disagree with this, but it's a fact.

Then, probably they are copying most profitable traders, but you will never know the exact money who they will invest for each one, and in the same time you cannot know if it's true or not basically because you don't need to know it.

As long as they mantains their strict rules, % of loosers traders will be more than % alerted by brokers (which is 70-75). It's also this, simple maths to understand their whole business can survive just thanks to this statistics, they don't need to risk any real penny.
phade #:

Would this really be interesting? It's common sense that you can lose a lot of trades by hoping price breaks out above BB high

Of course there are losers and winners, trading is a statistical gamble and with a good strategy you can mark the cards and statistics can tell you within limits.

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