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Bollinger bands + 50 EMA

  • #61
  • May 13, 2018 8:34am May 13, 2018 8:34am
Quoting yalgaar
can you share details about your tests? Your method of testing? Pairs? Results?
I used bluefx 1hr tf , manually forward tested by going 1 candle at a time for 8 day period, used gbpjpy only.
The results are on the first post.
  • #62
  • May 13, 2018 9:41am May 13, 2018 9:41am
Hi Hibra

I wanted to get clarification on your following rule for closing the trades.


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


Does this statement mean you close when the candle closes below low BB and 50 EMA? Did you mean "And" when you say "+" ?

If your answer is "yes" for the above. This would mean the following:
1) We do not close the trades if the candle closes below EMA 50 but not below lower BB.
2) We not close the trades if the candle closes below lower BB but not below EMA 50.

Can you please confirm this? Based on your answers the outcome of the trades will have a different fate.
  • #63
  • May 13, 2018 10:03am May 13, 2018 10:03am
Quoting yalgaar
Hi Hibra I wanted to get clarification on your following rule for closing the trades. 2: the price crosses and closes below the low bb + 50 ema. Does this statement mean you close when the candle closes below low BB and 50 EMA? Did you mean "And" when you say "+" ? If your answer is "yes" for the above. This would mean the following: 1) We do not close the trades if the candle closes below EMA 50 but not below lower BB. 2) We not close the trades if the candle closes below lower BB but not below EMA 50. Can you please confirm this? Based on your...
true, the price has to close below both.
but like i said before we can change the rules based on success of backtest results. so we need an ea and someone who knows how to backtest it properly.
  • #64
  • May 13, 2018 10:35am May 13, 2018 10:35am
Just found this BB indy with chose of MA type.

Since reading earlier discussion RE: difference of 50ema vs 20sma, I put additional 20ema over BB, and saw that there can be a 0 to 5 pip (approx) variation between SMA vs EMA crossings, when compared to 50ema. That got me thinking that this could throw method out of balance favoring one direction or another. A quick look also shows me that the difference in breach of close outside BB's, also changes, as the EMA BB's are further away from price vs SMA BB levels.

So, allow me to add to the mayhem...

btw, this indicator has same exactly same name as other MT4 default indicator called "Bands", which lives in indicator, general population folder. So I removed default "Bands", so as to do away with any confusion.
Attached File(s)
File Type: mq4 Bands.mq4   3 KB | 592 downloads
  • #65
  • May 13, 2018 12:09pm May 13, 2018 12:09pm
I made an EA for this strategy to test it,
please review this chart to make sure the trading rules are applied correctly
if the rules are correct then don't waste your time trading it
it will blow the account in ranging markets which is 75% of the time

Attached Image (click to enlarge)
Click to Enlarge Name: USDJPYH1.png Size: 76 KB
  • #66
  • May 13, 2018 12:17pm May 13, 2018 12:17pm
Quoting NotMe
I made an EA for this strategy to test it, please review this chart to make sure the trading rules are applied correctly if the rules are correct then don't waste your time trading it it will blow the account in ranging markets which is 75% of the time {image}
tnx for this.
this is what i wanted.
now we can adjust exits.
  • #67
  • May 13, 2018 12:21pm May 13, 2018 12:21pm
as you said in ranging market it fails.
what is a sign that the market will start ranging?
lets try: when 50 ema goes outside top bb or bottom bb it might start ranging. if you look at your chart when you start selling after a while 50 ema goes out of top bb. now close all sells and you might save account.
  • #68
  • May 13, 2018 12:24pm May 13, 2018 12:24pm
the idea is that bb' job is to keep price and moving averages inside the bb when they go out something is changing.
  • #69
  • May 13, 2018 12:27pm May 13, 2018 12:27pm
imo you have to explore all options before you go from say bb to cci or cci to stoch and so on. its not a waste of time at all. you have to change rules 1 by 1 untill u get a decent result. i didnt mean this to be a 123 easy strategy.
  • #70
  • May 13, 2018 12:32pm May 13, 2018 12:32pm
and looking at your chart i just noticed something, maybe its not a recurring thing but everyone should check it out.
when 50 ema goes out of top bb wait for price to touch top bb and sell tp at mid bb, reverse is same for buys. dont let this be a distraction from original idea. but we can add it to the rules.
  • #71
  • May 13, 2018 12:38pm May 13, 2018 12:38pm
we can have many spinoff strategies from this.
  • #72
  • May 13, 2018 12:57pm May 13, 2018 12:57pm
Quoting hibra68
we can have many spinoff strategies from this.
to avoid ranging markets , EA could start trading after a signal for BB squeeze ( just a n idea )
Here is the custom indicator explanation video ,
Inserted Video
What goes up will come down...
  • #73
  • May 13, 2018 1:21pm May 13, 2018 1:21pm
Quoting sam68
{quote} to avoid ranging markets , EA could start trading after a signal for BB squeeze ( just a n idea ) Here is the custom indicator explanation video , https://www.youtube.com/watch?v=H9tUkcPTcUI
yah we need a signal for ranging market start. we have to test and see which one is faster. i will look at the indi. but 50 ema out of bb and price going through mid bb and 50 ema are signs of ranging market(this usually means price is retracing on higher tf)
  • #74
  • May 13, 2018 1:51pm May 13, 2018 1:51pm
also other signs are, if upper bb and lower bb are pointing in same direction it is ranging: if they are pointing in opposite direction its a sign of momentum
  • #75
  • May 13, 2018 1:53pm May 13, 2018 1:53pm
Did you test it only on USD/JPY?
  • #76
  • May 13, 2018 3:18pm May 13, 2018 3:18pm
Quoting sam68
{quote} to avoid ranging markets , EA could start trading after a signal for BB squeeze ( just a n idea ) Here is the custom indicator explanation video , https://www.youtube.com/watch?v=H9tUkcPTcUI
sam do you have this indicator?
  • #77
  • May 13, 2018 3:26pm May 13, 2018 3:26pm
For now I'm gonna keep the original rules, I will keep in mind ranging market conditions for later.

This is because by the time we discover ranging market condition it would be too late.

I will change the way we enter and exit our positions only. So I will be attacking money management issues rather than system itself.
  • #78
  • May 13, 2018 4:27pm May 13, 2018 4:27pm
New rules.
Just changed the entry and exit rules didnt touch the system.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH4.png Size: 82 KB
  • #79
  • May 13, 2018 4:31pm May 13, 2018 4:31pm
I forgot to show the losing trades
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH4.png Size: 86 KB
  • #80
  • May 13, 2018 4:34pm May 13, 2018 4:34pm
A little note.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH4.png Size: 93 KB
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