I have been working on a new idea using only bollinger bands and candles.
I manually backtested the idea for 10 weeks using the eur/usd and the gbp/usd.
The results were quite good.
What I do , using the 1 hr chart is watch for situations where the shadows extend outside of the bollinger bands by 12 pips.
Weather the body is inside or outside the bollinger bands is irrelevant ,What I am looking for is the minimum 12 pip exhaustion (shadow).
If the candle with the shadow is bullish I wait for the first fully formed bearish candle to completely form and enter my sell order on the beginning of the next candle.I do the reverse with a bearish shadow.
I set my stop loss at 20 pips and my take profit at 40 pips. and let her ride.
After 10 weeks the results were 300 pip gain on the eur/usd and a 272 pip gain on the gbp/usd.
This may not seem like a lot but it works out to 11.4 pips a day and if a person used 4 pairs instead of 2 that would be around 23 pips a day.
The problem is that this would have to be monitored around the clock.
I was wondering if anyone could tell me if there is program that one could use to get alerts when this situation appears.
I would think candles over bollinger bands would be easy but in this case one is looking only for the 12 pip shadows.
Any help would be greatly appreciated.
I manually backtested the idea for 10 weeks using the eur/usd and the gbp/usd.
The results were quite good.
What I do , using the 1 hr chart is watch for situations where the shadows extend outside of the bollinger bands by 12 pips.
Weather the body is inside or outside the bollinger bands is irrelevant ,What I am looking for is the minimum 12 pip exhaustion (shadow).
If the candle with the shadow is bullish I wait for the first fully formed bearish candle to completely form and enter my sell order on the beginning of the next candle.I do the reverse with a bearish shadow.
I set my stop loss at 20 pips and my take profit at 40 pips. and let her ride.
After 10 weeks the results were 300 pip gain on the eur/usd and a 272 pip gain on the gbp/usd.
This may not seem like a lot but it works out to 11.4 pips a day and if a person used 4 pairs instead of 2 that would be around 23 pips a day.
The problem is that this would have to be monitored around the clock.
I was wondering if anyone could tell me if there is program that one could use to get alerts when this situation appears.
I would think candles over bollinger bands would be easy but in this case one is looking only for the 12 pip shadows.
Any help would be greatly appreciated.