I encourage others to come in, test the system, and offer any improvements, strategies, or apply automation. Someone who is good with Expert Advisors is welcomed to automate the strategy.
No off-topic conversations/discussions/trading systems or you will be ignored. Please do not ask simple questions either like how to install an indicator. Plenty of other resources on this and other forums on how to do that.
Indicators are 2 keltner channels with default settings except ATR and 2nd one's basis calculation (expontential). First ATR: sqrt(2). Second ATR: 1 / sqrt(2). See below
Keltner Channel #1 (inner):
Keltner Channel #1 (outer):
Enter LONG if candle closes above the upper band of inner keltner channel. TP: When upper band of outer keltner channel is hit by any other candle following entry. Your TP will need to dynamically change as the outer keltner channels adapt. SL: Below lower band of the inner keltner channel. Your SL will need to dynamically change as the inner keltner channel progresses.
Enter SHORT if candle closes below lower band of the inner keltner channel. TP: When lower band of the outer keltner channel is hit by any candle after the entry. Your TP will need to dynamically change as the outer keltner channels adapt. SL: Above upper band of the inner keltner channel. Your SL will need to dynamically change as the inner keltner channel progresses.
- I don't enter if the entry candle closes too far away from the upper/lower bands of the inner keltner channels. It has to "kiss" the inner channel basically and be close to it but still close above/below the channel for entry trigger. Depending on the setup I'd say the close should be at most 5-10 pips away from the channel.
- Put a little extra padding on your stop loss so its about 3-5 pips below the lower/upper band of the inner keltner channel.
- Good entries also have wider outer keltner channel bands so the TP is higher. I don't enter if the outer keltner channel is too close to the inner keltner channel as that would yield a smaller hit.
- I don't enter on very large candles that close above/below the channels compared to previous candles. The entry candle should be reasonably similar to the previous candles. So avoid giant red button meltdown type candles, even if they meet entry conditions.
- You can use this on any timeframe you want, but I recommend h1+
- Pair wise, I recommend you use pairs that trend nicely like the Yen or CAD pairs.
See some entry setups on posts below.
Update August 27, 2018:
Template has been added
BBSqueeze confirmation indicator has been added. Entry rules modified: Enter only if bbsqueeze green in addition to entry rules above.