Bollinger Band Day Trading System

Indicators Used:
-Bollinger Bars
-Stochastics
-MACD

These are the system rules. (This system works with either a trend up or trend down in a pair, but for the purposes of explaining this simply I will always use the example of an upward overall trend)

1. Identify Long-term trends for each pair you wish to trade (Using 1 day chart)

2. Idenfity Short-term trends for each pair you wish to trade (Using 1 hour or 30 mins chart)

3. If both the long term and the short term trend matchs, then that means this is an acceptable pair to trade with this system.

4. Using Bollinger Bars, identify entry points that trend against the pairs overall trend (Using a 15 - 5 min chart). Example: If the overall trend is up for a pair, watch for the price to drop below the lower bollinger band.

5. Confirm the entry point using Stochastics and MACD. Also wait at least one candle after you have identified the entry point, to make sure there is support.

6. Entry/Exit: This trade is usually only good for about 15 pips but if you found the right entry point you make them pretty quickly. Place a Stop (or trailing stop) at 15 pips below entry Point, and place a limit 15 pips above entry or at the middle Bollinger bar at the time of the trade.


This is my first system, could you please help me with any ideas on how to improve it. Also what is a good free program to backtest your system.

Notes: At the begining of the day trading this system I would identify pairs that fit the system and just shuffle through them every 10 mins to watch for this. I have been able to catch about 2-4 trades a day with this, with about an 85% success rate.

You should post a chart to better explain your system

HI shawnman19 , this is a similar system to what I've been thinking, with some twists.

1) On chart with BB TF M15 to H4. If price is at or below lower band GUY, exit when price is between upper band and MA in the middle.

If there is going to be a breakout UP in price, watch the LOWER band as it expands while prices hug the upper band, BUY Exit on the first close BELOW the upper band after an upward explosion.

Seems like a good strategy, any testers?

Pip2

no update on this strat ?

i posted another bollinger band system recently...

I think after a uptrend, you can exit a buy when the price touches
the middle line or even lower band.... all 3 might work.

"It is best to use Bollinger with another indicator (MACD, Stochs, volume (no volume in FOREX))" ... to quote from Bollinger himself. Again to quote "touching the bottom doesn't mean a buy and touching the top doesn't mean a sell", they are a lot more complicated and useful than that.
I find them useful for following a trend in the TF you are using, and very useful as a stop loss or TP. A short term trend (the BBands are expanding and sloping up or down in a trend, NOT flat) in the TF you in finishes when a candle opens (not just pierces) in the opposite BB hemisphere to the trend.

This was abandoned ... too bad!

very bad.. you need others filters...

Best Regards,
Marcelo Marques

Hello,

I trade only USD/CAD on new york day time as other time or currency pair reacts differently.

I buy when price crosses lower bollinger band,
OR sell when price crosses higher bollinger band.

I put stop loss close from entry point.

I exit either at the middle average or other band.

to complexify this,
I use standard deviation 10, relative strengh 14, stochastic slow 14,3,3, maybe momentum 10 also. just look at it you will understand.

put rsi and sto on the same (overlay), when rsi crosses 30 and sto crosse 20 AND price crosses lower bollinger band enter long BUY alternatly SELL (short) when rsi at 70 and sto at 80 and price at higher bollinger band.

I actually exit at the middle average.
I did it at the other band but when trending it stays at the middle.

I use simultaneously 1min. chart 5min. and 15 min.

you can developp your trading,

I newly added fractal and parabolic sar to confirm entry and exit.

I have more trades succes than failure ratio.

Best success,

Eric

note:
please stay out of calendar avent regarding USD or CAD