200BB Averaging+Hedging

I started testing averaging+hedging around 200 Bollinger Bands on M15. The basic setup is to have price move 20% ADR(100) away from BB and enter opposite trade with 20% ADR(100) TP. And then Average. And if it runs away, hedge on M5 and M1, looking for price to enter 200BB on that timeframe and opening hedging position of 50-80% size with that same 20% ADR(100) target.

Here's an example of easy trades. Hey, keep it small. Currently using 0.02% risk for reach trade.

Nothing exciting happening yet. Here's another example. I started a straddle and then averaged down

Closed for the week. Have not had a cause to hedge, just averaged. This was an easy week.

The biggest moneymaker this week was CADCHF.

The biggest loser was OIL. Talk about stopping the train. In the highlighted area all averages are in agreement and rising. No LL or LH has been made. No shorts should have been considered. This is the runaway phase, and the time to hedge if caught on the wrong side.

Closed for the week. I'm done with this account. This week was even less eventful than the previous. Two weeks don't prove anything, but it wasn't two weeks, really. Years. Let's go for a few years more.

Another account. Same rules as Post 1, plus one more rule for first position: price has to be on same side of 200,400 and 800 SMA. Another rule is: don't drink from same pool twice: I prefer to for price to make new highs to sell and lows to buy.




Slow start because I have trouble catching price moving 20% ATR(100) away from 200BB.

Additional rules (to get more trades while keeping same exposure)

Using 400/800 MA cross to identify trend. With trend, price does not need to be outside of bands, nor on the other side of all 400 and 800 MAs. That requirement is only for CT (countertrend) trades.

WT (with trend trades) only require to be inside bands (I use 200BB with 1 dev, not 2) and to be at least 20% ADR100 away from latest swing peak. Then the usual averaging rules kick in: 40% ADR100 for trade 2, then 20% for trade 3.

That way I can keep the music playing and the pairs dancing. So far, it's been fine to kill rogue pairs on Friday and be in good profit.