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Bollinger bands + 50 EMA

  • #1
  • First Post: May 10, 2018 7:17pm May 10, 2018 7:17pm
Hi guys I just wanted to share a strategy here so that I can get a feedback from everyone who tests it in their spare time.

I tested it using trading simulator bluefx.

I am posting results for 8 days of testing.

It takes time so maybe someone can make an EA for it.

Below I have the template and results.

Here is how to trade it :

timeframe 1hr

For long trades; 50 ema has to be below price and mid bb.


Keep taking long trades every time there is a bearish candle that closes, no matter where the price level is just take a long trade using same lot size.

Lot size depends on your account. for example if you want to be really safe. use .01 lot per $10,000.00 account.
Using .01 lot for a $1000 account is fine though as long as your broker gives you at least 200:1 leverage.

There are 2ways to get out of a trade ;

1: you close all the trades once a bullish candle pierces the upper bb and closes outside. At this point when there is a bearish candle that closes back inside the top bb you can start trading longs the same way again( an alternative could be to keep taking trades the same way even though the price broke above top bb.)

2: the price crosses and closes below the low bb + 50 ema.

The reverse is true for sells.

Now my results are based on taking trades until the low bb or top bb +50 ema was crossed and closed by price.
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  • #2
  • May 11, 2018 12:09am May 11, 2018 12:09am
Dear hibra68,
Thank you for discussing this strategy. Does it matter where price is in relation to 50ema? I do not see many good trade from your picture and main trade is missed as you wait for ema to cross. I will have another look later today. I seen another similar strategy before where it was important to have price below the 50ema also ( you will see that one place where the 50 and 20 cross as price touch lower BB. But that was not profitable in the long run.)

If I see that it is worth spending time to make code for EA I will do it and put here for you to try. Otherwise, I think if you try for longer period you can end up with 0 gains or even a loss. I really like how you maintain same lot size and not increase it like martingale

Best Regards,
Tzamo

Quoting hibra68
Hi guys I just wanted to share a strategy here so that I can get a feedback from everyone who tests it in their spare time. I tested it using trading simulator bluefx. I am posting results for 8 days of testing. It takes time so maybe someone can make an EA for it. Below I have the template and results. Here is how to trade it : timeframe 1hr For long trades; 50 ema has to be below price and mid bb. Keep taking long trades every time there is a bearish candle that closes, no matter where the price level is just take a long trade using same lot size....
"Work hard, put in the effort, and follow your dreams..." -Me
  • #3
  • May 11, 2018 2:21am May 11, 2018 2:21am
Dear hibra68,
Could you share me Indicator for testing ? Thanks
  • #4
  • May 11, 2018 9:10am May 11, 2018 9:10am
Hello Hibra.
Please tell me I have this wrong.

I'm assuming that once price closes above/below BB, a new trading sequence is initiated. Could be my first mistake.

In the example shown here, provided I entered shorts on each bull bar close, I would have had 90 short entries before price closes below both BB & 50 ema. Meanwhile price has traveled 177 pips in wrong direction before this happens. At this point, I'm looking for a very tall building to jump off of.

Can you help me understand this better?
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  • #5
  • May 11, 2018 9:39am May 11, 2018 9:39am
Quoting diamonddbw
Hello Hibra. Please tell me I have this wrong. I'm assuming that once price closes above/below BB, a new trading sequence is initiated. Could be my first mistake. In the example shown here, provided I entered shorts on each bull bar close, I would have had 90 short entries before price closes below both BB & 50 ema. Meanwhile price has traveled 177 pips in wrong direction before this happens. At this point, I'm looking for a very tall building to jump off of. Can you help me understand this better? {image} {image}
No, it exactly the opposite maybe i explained it wrong.
When 50 ema is below mid bb its an uptrend u only buy.
We can have different variations of how to trade this.
I got this idea from bbma. I did not introduce the moving averages here but i will later. Instead i wanted to try candle sticks.
Meaning in an uptrend we buy every bearish candle that closes. The idea is to use reentry in an uptrend.
When 50 ema goes out of top bb or bottom bb it might start to range(this is no guarantee) than we can sell top bb and buy bottom bb or stay on sidelines.

And we have option of closing long trades when candle stick closes out of top bb and than a bearish cs closes back inside. Than we buy again in same way(here we have the option of starting with smaller lots) than when cs closes out of top bb and back in again we do the same thing and we now open even smaller lots. The idea is that trend might be losing volume everytime price goes out of bb.
  • #6
  • May 11, 2018 9:57am May 11, 2018 9:57am
Quoting diamonddbw
Hello Hibra. Please tell me I have this wrong. I'm assuming that once price closes above/below BB, a new trading sequence is initiated. Could be my first mistake. In the example shown here, provided I entered shorts on each bull bar close, I would have had 90 short entries before price closes below both BB & 50 ema. Meanwhile price has traveled 177 pips in wrong direction before this happens. At this point, I'm looking for a very tall building to jump off of. Can you help me understand this better? {image} {image}
Of course we can help :
The highest building in the world at the moment is :
The Burj Khalifa, in Dubai, United Arab Emirates.
http://www.burjkhalifa.ae/en/the-tow...ndfigures.aspx



If there is any money left in the account, you might travel to Dubai. If you blew your account, you can always go to Chicago. (Sears Tower). Those are cheaper travel expenses anyway.

Meanwhile, I advise you to better read the instructions in post #1.
If you do the opposite of what you described, you will be fine and there won't be any need to jump off a tower.
Attached Image
  • #7
  • May 11, 2018 10:00am May 11, 2018 10:00am
Quoting hibra68
{quote} No, it exactly the opposite maybe i explained it wrong. When 50 ema is below mid bb its an uptrend u only buy. We can have different variations of how to trade this. I got this idea from bbma. I did not introduce the moving averages here but i will later. Instead i wanted to try candle sticks. Meaning in an uptrend we buy every bearish candle that closes. The idea is to use reentry in an uptrend. When 50 ema goes out of top bb or bottom bb it might start to range(this is no guarantee) than we can sell top bb and buy bottom bb or stay on...
+++++++++++++++++++++++++++++++

Excellent. Thanks for reply. I'll need to go thru your response a few times. to fully understand. Many variations for my tiny brain to wrap around.
  • #8
  • May 11, 2018 10:49am May 11, 2018 10:49am
Quoting Riverstar
{quote} Of course we can help : The highest building in the world at the moment is : The Burj Khalifa, in Dubai, United Arab Emirates. http://www.burjkhalifa.ae/en/the-tow...ndfigures.aspx If there is any money left in the account, you might travel to Dubai. If you blew your account, you can always go to Chicago. (Sears Tower). Those are cheaper travel expenses anyway. Meanwhile, I advise you to better read the instructions in post #1. If you do the opposite of what you described, you will be fine and there won't be any need to...
++++++++++++++++++++++++

My Man! You just saved my life! ROFL
  • #9
  • May 11, 2018 11:38am May 11, 2018 11:38am
Hadn't planned on opening any new trades this morning but ran across your thread and thought I would give it a go on 5m. Gained some nice pips. Only thing I did differently is honor h4 200ema trend to (hopefully) avoid whipsaws. Worked out well.


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Blessed is the one who takes refuge in Him.
  • #10
  • May 11, 2018 1:42pm May 11, 2018 1:42pm
Quoting reo4ua
Hadn't planned on opening any new trades this morning but ran across your thread and thought I would give it a go on 5m. Gained some nice pips. Only thing I did differently is honor h4 200ema trend to (hopefully) avoid whipsaws. Worked out well. {image}
cool i think we can work out a profitable strategy out of this together.
  • #11
  • May 11, 2018 1:47pm May 11, 2018 1:47pm
Quoting tzamo
Dear hibra68, Thank you for discussing this strategy. Does it matter where price is in relation to 50ema? I do not see many good trade from your picture and main trade is missed as you wait for ema to cross. I will have another look later today. I seen another similar strategy before where it was important to have price below the 50ema also ( you will see that one place where the 50 and 20 cross as price touch lower BB. But that was not profitable in the long run.) If I see that it is worth spending time to make code for EA I will do it and put...
sorry i somehow missed your post.
im just trying to find a profitable system based on the reentries when the market is trending.
this is from bbma system, i dont want to mention their name here because they were moved to commercial and than the thread died.
anyway their system is much more complex and depe ds on at least 3 tf confirmation. but 90 perce t of trades are based on reentries following trend once there is confirmation.
  • #12
  • May 11, 2018 1:54pm May 11, 2018 1:54pm
Quoting martinyan
Dear hibra68, Could you share me Indicator for testing ? Thanks
its standart mt4 indicator,
bb 20,2
50 ema close
  • #13
  • May 11, 2018 7:02pm May 11, 2018 7:02pm
Quoting hibra68
Hi guys I just wanted to share a strategy here so that I can get a feedback from everyone who tests it in their spare time. I tested it using trading simulator bluefx. I am posting results for 8 days of testing. It takes time so maybe someone can make an EA for it. Below I have the template and results. Here is how to trade it : timeframe 1hr For long trades; 50 ema has to be below price and mid bb. Keep taking long trades every time there is a bearish candle that closes, no matter where the price level is just take a long trade using same lot size....

Hi hibra68,

You wrote : "50 ema has to be below price and mid bb".
What do you mean by that ?

1) price > 50ema AND price > mid bb

or

2) price > 50ema AND mid bb > 50ema

Which one is it ?
  • #14
  • May 11, 2018 7:35pm May 11, 2018 7:35pm
Quoting Riverstar
{quote} Hi hibra68, You wrote : "50 ema has to be below price and mid bb". What do you mean by that ? 1) price > 50ema AND price > mid bb or 2) price > 50ema AND mid bb > 50ema Which one is it ?
If 50 ema is below mid bb its considered an uptrend.

this is a system in development.

when the 50 ema is going through price check higher time frame the price is making a reentry.

so entry rules are not written in stone at the moment but for identifying the trend 50 ema must be below mid bb, and if the price is close or touching 50 ema usually the market is or will start ranging.

I guess for the above style of trading its best if price is > 50 ema + price is > mid bb and mid bb >50 ema.

Also if 50 ema goes out of low or top bb the price most probably will start ranging. This means the higher time frame the price is retracing to later continue its trend.

Again I got all this from bbma but they are not very clear on rules and there is very little material in English to get clear answers so I'm trying to develop a system based on it.
  • #15
  • May 11, 2018 8:03pm May 11, 2018 8:03pm
Quoting hibra68
{quote} If 50 ema is below mid bb its considered an uptrend. this is a system in development. when the 50 ema is going through price check higher time frame the price is making a reentry. so entry rules are not written in stone at the moment but for identifying the trend 50 ema must be below mid bb, and if the price is close or touching 50 ema usually the market is or will start ranging. I guess for the above style of trading its best if price is > 50 ema + price is > mid bb and mid bb >50 ema. Also if 50 ema goes out of low or top bb the price...

For your information :

The mid bb is actually equal to 20 SMA ( 20 simple moving average)
So we get price, 20SMA and 50EMA as variables. They may then be compared with each other to derive entry rules.

As for the exit rules : here the upper and lower BB come into consideration.
  • #16
  • May 11, 2018 8:13pm May 11, 2018 8:13pm
Quoting Riverstar
{quote} For your information : The mid bb is actually equal to 20 SMA ( 20 simple moving average) So we get price, 20SMA and 50EMA as variables. They may then be compared with each other to derive entry rules. As for the exit rules : here the upper and lower BB come into consideration.
I know 20 sma is mid bb.

But entry rules are not based on 50 and 20 mas

entry is for now based on candle stick direction.

50 and 20 ma's are for determining trend direction.

At the moment in an uptrend a closed bearish candle is an oppurtunity for entry.

Later i might try a rejection of 5 ma high as an entry in an uptrend.

But lets not go there yet.
  • #17
  • May 11, 2018 8:15pm May 11, 2018 8:15pm
Basically I need an EA based on the original rules , later on we can add and remove stuff to get best results.
  • #18
  • May 11, 2018 8:27pm May 11, 2018 8:27pm
Quoting hibra68
{quote} I know 20 sma is mid bb. But entry rules are not based on 50 and 20 mas entry is for now based on candle stick direction. 50 and 20 ma's are for determining trend direction. At the moment in an uptrend a closed bearish candle is an oppurtunity for entry. Later i might try a rejection of 5 ma high as an entry in an uptrend. But lets not go there yet.

Actually...it is EXACTLY the same.

When you are coding, you are coding upper BB and Lower BB, reference to the Centre is actually defined by a 20SMA - Default Value.

ie, if 20SMA>=50EMA && Close[1]<LowerBB -buy.
Converse for shorts.

Exit Longs - If 20SMA>=50EMA && Close[1]>UpperBB - CloseAll
Exit Longs 2 - If 20 SMA<=50EMA && Close[1]>50EMA - CloseAll
Converse for shorts.

It's a neat idea and one I will be working on...but will be going with a little faster frame than H1.

Adding in a trend indicator for a short time frame and a few options for back triggering...meh...will see what happens.

If all else fails, might give your full rules a shot, I'm just not a huge fan of Longer TFs.

Great job on the idea, entries and exits in and out of trend.

\m/
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #19
  • May 11, 2018 8:34pm May 11, 2018 8:34pm
Quoting hibra68
Basically I need an EA based on the original rules , later on we can add and remove stuff to get best results.
Make ya a deal though...

Give $50 USD to the Make A Wish Foundation -> as Shown HERE, first post, publish a screenshot (your personal details can be omitted) and I will code this EXACTLY as you have dictated in your original post.

Keeping in mind...that's all I am going to do.

If it fails...not my problem and I am not your bitch for a charitable donation.

Deal?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #20
  • May 11, 2018 8:48pm May 11, 2018 8:48pm
Quoting Magix
{quote} Actually...it is EXACTLY the same. When you are coding, you are coding upper BB and Lower BB, reference to the Centre is actually defined by a 20SMA - Default Value. ie, if 20SMA>=50EMA && Close[1]<LowerBB -buy. Converse for shorts. Exit Longs - If 20SMA>=50EMA && Close[1]>UpperBB - CloseAll Exit Longs 2 - If 20 SMA<=50EMA && Close[1]>50EMA - CloseAll Converse for shorts. It's a neat idea and one I will be working on...but will be going with a little faster frame than H1. Adding in a trend indicator for a short time frame and a few options...
Tnx for the feedback.

As I said its not a final decision on how to trade this idea. I want to get feedback and new ideas like the one you presented. I took alot of reentry trades when I did the simulator test. This creates alot of potential risk. So I will add filters like higher tf's like D,4,1 if all true than take trades based on original rules or new rules.

But as for the EA I have a friend who can do it. Its not really urgent at the moment. I just want people like you to create EA's test them and give feedback. Not necessarily need the EA for myself right now. Its hard to test for a long time like a year on a simulator.

Also you can use 50 ema above below mid bb on 1 tf higher as your trend indicator for your EA.
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