Bollinger Bands Range And Trend Trading
I recently started testing a system that is very simple but sticks closely to market fundamentals. I'm seeing very good results in forward testing and visual backtesting. It's very simple, use Bollinger Bands and the support and resistance these bands provide to get early entries and exits.
Basically, this is how it works. When a currency pair is trending, whether it is a bull or bear market, the midline of the Bollinger Bands will move upward or downward accordingly. Therefore, in a trending market, we will use a retracement to the midline (ma) to enter the market. Entry is simple: once price hits (or comes close to hitting) the center line, the next candle that breaks the high of that bar is our entry. We enter once the candle breaks above the previous bar's high (or the low of a short trade). Once the price closes back below or above the center line, we take profit.
For range trading, the center line of the Bollinger Bands will be flat. We enter a trade when price hits a Bollinger Band top or bottom and rebounds. Once the price breaks above the previous bar's high or low, we can place the trade. Once another swing is reached, we exit the trade. I've attached some examples. If anyone has any ideas for EA, I think this could be super profitable!
P.S. I've found that on a 15 minute chart you can use a TP of 20 pips and a stop loss of 15 pips... this can also be very profitable if you get in at the right time. If developing any EA, it would be nice to have the flexibility to set permanent stops and TPs for each trade. Also, it would be great to have invisible stops and TPs so that the broker cannot see the trader's orders.
If you have any questions, if you have any ideas to improve or improve the strategy, or if you are a programmer who can make a high-quality EA for this that works on multiple pairs, please let me know.
Basically, this is how it works. When a currency pair is trending, whether it is a bull or bear market, the midline of the Bollinger Bands will move upward or downward accordingly. Therefore, in a trending market, we will use a retracement to the midline (ma) to enter the market. Entry is simple: once price hits (or comes close to hitting) the center line, the next candle that breaks the high of that bar is our entry. We enter once the candle breaks above the previous bar's high (or the low of a short trade). Once the price closes back below or above the center line, we take profit.
For range trading, the center line of the Bollinger Bands will be flat. We enter a trade when price hits a Bollinger Band top or bottom and rebounds. Once the price breaks above the previous bar's high or low, we can place the trade. Once another swing is reached, we exit the trade. I've attached some examples. If anyone has any ideas for EA, I think this could be super profitable!
P.S. I've found that on a 15 minute chart you can use a TP of 20 pips and a stop loss of 15 pips... this can also be very profitable if you get in at the right time. If developing any EA, it would be nice to have the flexibility to set permanent stops and TPs for each trade. Also, it would be great to have invisible stops and TPs so that the broker cannot see the trader's orders.
If you have any questions, if you have any ideas to improve or improve the strategy, or if you are a programmer who can make a high-quality EA for this that works on multiple pairs, please let me know.
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