Bollinger Band Daily System - MT4/MT5 Resources
I learned a lot here so I decided to give feedback. (Sorry for my bad English.)
I will show you a simple but powerful system using only Bollinger Bands (20,0,2,Close).
As you can see, this is the daily chart of EURUSD with Bollinger Bands.
http://www.forexfactory.com/attachme...1&d=1336841124
Basically, we open a position when price action hits the lower or upper line of BB and back, we set the SL a few pips below the low or a few pips above the high, and if we are lucky enough to make some pips, then we set the new SL to BE + a few pips. When price action hits the opposite upper or lower line, we close the position.
I'm going to show you what some diagrams mean.
Trade 1
http://www.forexfactory.com/attachme...1&d=1336841708
Trade 2:
http://www.forexfactory.com/attachme...1&d=1336841708
Trade 3:
http://www.forexfactory.com/attachme...1&d=1336841770
Now let me tell you the details.
1A Touch BB's upper or lower line.
2 Immediate return (for this case PA should return a lot, it depends on experience) or PA return on the next bar (for EURUSD no trade if return bar >120pips).
3: At the opening of the next opening price bar, SL = the high of the bar touching the upper line of BB + a few points (for example, 5 points) ) or the low of the bar touching the lower line of BB - a few points, let's say it is 80 points. (For EURUSD, no trade is taken if stop loss >120 pips).
4: When you have 80 pips profit, move SL to BE + a few pips.
5: Close the position when PA touches the upper or lower line of the opposite BB.
By the way, I have 5 bars per week in my daily chart, if your chart has 6 bars per week, you'd better use another broker.
The advantages of this system are its simplicity, a win/loss ratio of 3:1 (assuming 300pips on a winning trade and -100pips on a losing trade), and the BB never redraws, so you can backtest easily.
Some deals...
http://www.forexfactory.com/attachme...1&d=1336841210
Please feel free to ask questions. But since I'm a college student facing an upcoming exam , maybe I can't answer you right away.
Thanks
I will show you a simple but powerful system using only Bollinger Bands (20,0,2,Close).
As you can see, this is the daily chart of EURUSD with Bollinger Bands.
http://www.forexfactory.com/attachme...1&d=1336841124
Basically, we open a position when price action hits the lower or upper line of BB and back, we set the SL a few pips below the low or a few pips above the high, and if we are lucky enough to make some pips, then we set the new SL to BE + a few pips. When price action hits the opposite upper or lower line, we close the position.
I'm going to show you what some diagrams mean.
Trade 1
http://www.forexfactory.com/attachme...1&d=1336841708
Trade 2:
http://www.forexfactory.com/attachme...1&d=1336841708
Trade 3:
http://www.forexfactory.com/attachme...1&d=1336841770
Now let me tell you the details.
1A Touch BB's upper or lower line.
2 Immediate return (for this case PA should return a lot, it depends on experience) or PA return on the next bar (for EURUSD no trade if return bar >120pips).
3: At the opening of the next opening price bar, SL = the high of the bar touching the upper line of BB + a few points (for example, 5 points) ) or the low of the bar touching the lower line of BB - a few points, let's say it is 80 points. (For EURUSD, no trade is taken if stop loss >120 pips).
4: When you have 80 pips profit, move SL to BE + a few pips.
5: Close the position when PA touches the upper or lower line of the opposite BB.
By the way, I have 5 bars per week in my daily chart, if your chart has 6 bars per week, you'd better use another broker.
The advantages of this system are its simplicity, a win/loss ratio of 3:1 (assuming 300pips on a winning trade and -100pips on a losing trade), and the BB never redraws, so you can backtest easily.
Some deals...
http://www.forexfactory.com/attachme...1&d=1336841210
Please feel free to ask questions. But since I'm a college student facing an upcoming exam , maybe I can't answer you right away.
Thanks
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