HI !
I started a thread earlier bollinger bands plus trendline break.
Although this has potential it was too boring for me in the long run.
I like to experiment with bollinger bands alot.
The reason behind this is a well known group that has their own system based on BB. They are extremely successfull.
I will not give their name here because they were moved to commercial section and the thread did not belong to the original creators so there is copy right issue.
Anyway.
I am experimenting with fibonacchi and bollinger bands.
The idea is to draw fibonacchi retracements from the extremes of bollinger bands.
Extreme happens when the price breaks outside of the outer bands.
So lets say there is a new extreme. Price breaks outside top bollinger band for the first time after it breaks outside bottom bollinger bands.
Now we wait for a new extreme that breaks bottom of bollinger bands.
So we can draw fibo from the first extreme(top bb) to this new extreme (bottom bb).
This is where it gets experimental. I originally moved the start point of fibo (top bb) to the highest wick of the last candle before price made the second extreme(bottom bb). And I kept changing the end point of fibo everytime price made a new low at bottom bb.
I changed that: So now I keep the starting point of fibo at the top of the first candle that breaks the outer bands(first extreme) in this case top bb. And I still move the end point of fibo to the lowest candle.
Ok i do this until I get an entry triggered for my trade.
So how do we set entry, exit, breakeven and take profit? Well its still experimental but here is the latest.
First I have to say that I am trying to create a hybrid system:
What I mean by hybrid is a system that works in both ranging and trending markets.
What the system will do is switch from ranging parameters to trending parameters and vice versa as soon is we get a loss in the ranging system.
So we will start with ranging system parameters than if we get a loss we will switch to trending system parameters and if we get a loss we switch back and so on.
Why am I starting with ranging parameters? Because it gives me the most profit in the shortest time.
For now I will give quick examplesI have to eat and do something will be back)
BUY TRADES:
DRAW FIBO FROM TOP EXTREME(TOP OF FIRST CANDLE TO BREAK TOP BB) TO THE BOTTOM OF THE FIRST CANDLE THAT BREAKS BOTTOM BB
GO LONG WHEN PRICE BREAKS AND CLOSES ABOVE 23.6 FIBO
STOP LOSS 5 PIPS BELOW 0.00
DO WHICHEVER HAPPENS FIRST:
IF PRICE REACHES 1:2 RR START TRACING SL BEHIND LAST CANDLE UNTILL YOU GET STOPPED
IF PRICE REACHES 61.8 FIBO BRING SL BELOW 38.2 THAN DO ABOVE
OR YOU CAN JUST CLOSE TRADE AT 1:1 RR ITS UP TO YOU
IF PRICE GOES BELOW THE 0.00 LINE AND CLOSES BEFORE YOUR ENTRY IS TRIGGERED MOVE END POINT OF FIBO TO THE LATEST LOW AND REPEAT PROCESS.
IF TRADE IS SUCCESSFULL, NOW YOU ARE LOOKING FOR A SELL TRADE DOING THE SAME THING IN REVERSE.
IF ITS NOT SUCCESSFULL YOU WILL SWITCH TO TRENDING PARAMETERS AND DO A SELL TRADE
FOR TRENDING ALL WE DO IS USE 38.2; SO PRICE HAS TO BREAK AND CLOSE BELOW/ABOVE 38.2 FOR OUR TRADE TO GET TRIGGERED.
THE REASON FOR THIS IS IF THERE IS A STRONG TREND IT IS HARD FOR PRICE TO CLOSE BELOW 38.2 THUS IT WILL KEEP US OUT OF BAD TRADES.
THATS IT FOR NOW I WILL COME WITH MORE EXAMPLES.
I started a thread earlier bollinger bands plus trendline break.
Although this has potential it was too boring for me in the long run.
I like to experiment with bollinger bands alot.
The reason behind this is a well known group that has their own system based on BB. They are extremely successfull.
I will not give their name here because they were moved to commercial section and the thread did not belong to the original creators so there is copy right issue.
Anyway.
I am experimenting with fibonacchi and bollinger bands.
The idea is to draw fibonacchi retracements from the extremes of bollinger bands.
Extreme happens when the price breaks outside of the outer bands.
So lets say there is a new extreme. Price breaks outside top bollinger band for the first time after it breaks outside bottom bollinger bands.
Now we wait for a new extreme that breaks bottom of bollinger bands.
So we can draw fibo from the first extreme(top bb) to this new extreme (bottom bb).
This is where it gets experimental. I originally moved the start point of fibo (top bb) to the highest wick of the last candle before price made the second extreme(bottom bb). And I kept changing the end point of fibo everytime price made a new low at bottom bb.
I changed that: So now I keep the starting point of fibo at the top of the first candle that breaks the outer bands(first extreme) in this case top bb. And I still move the end point of fibo to the lowest candle.
Ok i do this until I get an entry triggered for my trade.
So how do we set entry, exit, breakeven and take profit? Well its still experimental but here is the latest.
First I have to say that I am trying to create a hybrid system:
What I mean by hybrid is a system that works in both ranging and trending markets.
What the system will do is switch from ranging parameters to trending parameters and vice versa as soon is we get a loss in the ranging system.
So we will start with ranging system parameters than if we get a loss we will switch to trending system parameters and if we get a loss we switch back and so on.
Why am I starting with ranging parameters? Because it gives me the most profit in the shortest time.
For now I will give quick examplesI have to eat and do something will be back)
BUY TRADES:
DRAW FIBO FROM TOP EXTREME(TOP OF FIRST CANDLE TO BREAK TOP BB) TO THE BOTTOM OF THE FIRST CANDLE THAT BREAKS BOTTOM BB
GO LONG WHEN PRICE BREAKS AND CLOSES ABOVE 23.6 FIBO
STOP LOSS 5 PIPS BELOW 0.00
DO WHICHEVER HAPPENS FIRST:
IF PRICE REACHES 1:2 RR START TRACING SL BEHIND LAST CANDLE UNTILL YOU GET STOPPED
IF PRICE REACHES 61.8 FIBO BRING SL BELOW 38.2 THAN DO ABOVE
OR YOU CAN JUST CLOSE TRADE AT 1:1 RR ITS UP TO YOU
IF PRICE GOES BELOW THE 0.00 LINE AND CLOSES BEFORE YOUR ENTRY IS TRIGGERED MOVE END POINT OF FIBO TO THE LATEST LOW AND REPEAT PROCESS.
IF TRADE IS SUCCESSFULL, NOW YOU ARE LOOKING FOR A SELL TRADE DOING THE SAME THING IN REVERSE.
IF ITS NOT SUCCESSFULL YOU WILL SWITCH TO TRENDING PARAMETERS AND DO A SELL TRADE
FOR TRENDING ALL WE DO IS USE 38.2; SO PRICE HAS TO BREAK AND CLOSE BELOW/ABOVE 38.2 FOR OUR TRADE TO GET TRIGGERED.
THE REASON FOR THIS IS IF THERE IS A STRONG TREND IT IS HARD FOR PRICE TO CLOSE BELOW 38.2 THUS IT WILL KEEP US OUT OF BAD TRADES.
THATS IT FOR NOW I WILL COME WITH MORE EXAMPLES.