Trading with Method BB | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

bo7a method... method for GBP/JPY 205 replies

Azzity's Trading Journal III (Azzity's 3/30 Trading Method) 9 replies

my trading system or trading method 10 replies

(Method) Trading Systems 1 reply

Simple trading method 49 replies

Attachments: Trading with Method BB
Exit Attachments

Trading with Method BB

  • #1
  • First Post: Feb 4, 2007 11:39am Feb 4, 2007 11:39am
Hello everyone,

These are my trades using Method BB

Feel free to post your trades, and look forward to seeing mine

Kevin
  • #2
  • Feb 4, 2007 12:08pm Feb 4, 2007 12:08pm
Trade #1

Short EUR/USD
Date: 2/1/06
Price: 1.3021
Lots: 2
Reason:
Price closed out of Resistance bands and SMA was sloping down(meaning 2 lots).

Liquidate 1 lot EUR/USD
Date: 2/2/06
Price: 1.2967
Lots: 1
Reason:
Price hits SMA; therefore, we liquidate 1 lot.

PIP P/L: 54 pips
Total P/L: 54 pips
Attached Image
  • #3
  • Feb 4, 2007 12:11pm Feb 4, 2007 12:11pm
Kevin,

Eager for the markets to open. Your work is a very nice twist on what I've learned about BB to date. This should be fun!

Only thing I can't grasp.....how to incorporate, and interpret, the ATR (20)?

Thanks,
Randy
  • #4
  • Feb 4, 2007 12:17pm Feb 4, 2007 12:17pm
I'm looking forward to this as well. I gotta tip my hat to you the way you have been on the ball and answering all questions and addressing all concerns. One suggestion, and not to the method. Can you put a link on this thread to your BB(final). So if there are any changes we can look at them there. Just a thought.

Mike.
Taking Life One Pip At A Time I officially have my own opinion.
  • #5
  • Feb 4, 2007 12:17pm Feb 4, 2007 12:17pm
Per my Daily chart of USD/CHF there is a 2 lot buy signal.
  • #6
  • Feb 4, 2007 3:13pm Feb 4, 2007 3:13pm
Randy,

Is this what you are seeing?
Attached Image
  • #7
  • Feb 4, 2007 3:30pm Feb 4, 2007 3:30pm
Yep, that is what I'm seeing...close inside the channel, with a neutral (flat) midline, equals 2 lot entry. Agreed eveyone?

Randy

still not clear on ATR s/l
  • #8
  • Feb 4, 2007 4:20pm Feb 4, 2007 4:20pm
After another look at the USD/CHF chart, I see that the bands are squeezing which forecasts a pending breakout and increae in volatility. An entry now would put us entering into a consolidation without knowing which way the breakout is going to occur.

Kevin,

Have you taken this into account in the construction and backtest of your system?

Thanks,
Randy
  • #9
  • Edited 4:42pm Feb 4, 2007 4:33pm | Edited 4:42pm
Quoting RandyG67
Per my Daily chart of USD/CHF there is a 2 lot buy signal.
Agreed. Once my spread lowers I will BUY 2 lots of USD/CHF.

Quote
After another look at the USD/CHF chart, I see that the bands are squeezing which forecasts a pending breakout and increae in volatility. An entry now would put us entering into a consolidation without knowing which way the breakout is going to occur.

Kevin,

Have you taken this into account in the construction and backtest of your system?

Thanks,
Randy

My method does not care whether the BB bands are squeezing or not. In backtests, I only took trades that followed the entry set ups. Even if it was NARROW. Odds are this is going to break up for profit, and then shoot down hard. At the top we will be out, and set up for a decent pip gain. This is if all goes well. Here's a chart of what my USD/CHF looks like:


And as far a ATR. When you buy or sell on a bar, Just take the value you entered at and add or subtract whatever the ATR says. That is your S/L. So, for USD/CHF, when I buy it will be at around 1.2477 with an ATR of .0087. this means my stop loss is 1.2390 for both lots. Hope this makes sense.

Kevin


CORRECTION:

I WILL ONLY BE BUYING ONE LOT OF USD/CHF. THIS IS BECAUSE IT HAS ALREADY CROSSED THE CENTER SMA. PLEASE TAKE NOTE, AND ONLY BUY ONE LOT.
Attached Image
  • #10
  • Feb 4, 2007 4:42pm Feb 4, 2007 4:42pm
Thanks Kevin,

Both points are very clear now.
  • #11
  • Feb 4, 2007 6:58pm Feb 4, 2007 6:58pm
Hi Kevin,

I mentioned to you in the Daily Pivot thread that I was considering EUR/AUD as a potential pair for the system due to its similar volatility to GBP/USD, but with virtually no correlation between the two. So, I thought I 'd look at its potential with the BB method as well.

With all that said, a Sell signal was triggered on 2/2 at 1.6719 on my charts, so that's my first BB trade.

On with the forward testing!
Greetings from Guanajuato, Mexico
  • #12
  • Feb 4, 2007 9:36pm Feb 4, 2007 9:36pm
Alright gentlemen (and ladies),

I hope we all enjoyed the Super Bowl(GO COLTS!!). I have to say the commercials sucked, but other than that, twas a good game!

I have entered a couple of trades on top of my EUR/USD trade (Thanks Randy(Yen, this is confusing with 2 randy's) for the recommendation of EUR/AUD)

Trade #2

Long USD/CHF
Date: 2/4/07
Price: 1.2484
Lots: 1
Reason:
On February 2nd, the price broke into the resistances, but then ended up closing into the main channel at the end of the day. I missed my chance to take the trade as it was a Friday, So I just took it today. You will notice that the SMA is sloping up which normally means 2 lots. HOWEVER, since the price has already crossed the SMA, we will only buy 1 lot. Because we are waiting for a reverse entry signal, there will be no S/L.

Trade #3

Short EUR/AUD
Date: 2/4/07
Price: 1.6730
Lots: 1
Reason:
The same reasoning as my USD/CHF. I missed my opportunity on Friday, so I just took it today, as it is at the same price just about. There will be only 1 lot because the SMA is sloping up. My ATR was showing a 103 value for S/L, but I just used 100(ish).


PIP P/L: 0 pips
Total P/L: 54 pips
Attached Images
  • #13
  • Feb 4, 2007 11:38pm Feb 4, 2007 11:38pm
I just entered a Short on EUR/CAD.

This trade conforms to the BB method. In addition, a head & shoulder pattern is also evident, which adds to the bias for a sell, so it will be fun to see how it works out.
Greetings from Guanajuato, Mexico
  • #14
  • Feb 5, 2007 8:00am Feb 5, 2007 8:00am
Quoting yen44x
I just entered a Short on EUR/CAD.

This trade conforms to the BB method. In addition, a head & shoulder pattern is also evident, which adds to the bias for a sell, so it will be fun to see how it works out.
Did you sell one lot or 2? Because according to my chart, you should have bought on 2/2/07 and the SMA for that day was FLAT. I would have gone with 2 I believe.

Anyway, currently, my account is up 3.5%, and so far so GOOD
  • #15
  • Edited 9:47am Feb 5, 2007 9:20am | Edited 9:47am
Quoting kharvell
Did you sell one lot or 2? Because according to my chart, you should have bought on 2/2/07 and the SMA for that day was FLAT. I would have gone with 2 I believe.

Anyway, currently, my account is up 3.5%, and so far so GOOD
Kevin,

Just to clarify . . . the EUR/CAD was a SELL on 2/2, and yes I went with 2 lots due to the flat SMA.

I have no BB method trades that are completed yet, but I'm down on NZD/JPY, flat on USD/CHF, and up on EUR/AUD & EUR/CAD.
Greetings from Guanajuato, Mexico
  • #16
  • Feb 5, 2007 10:03am Feb 5, 2007 10:03am
Kevin,
You have three threads active ('Method BB'; 'Method BB Final' and 'Trading method BB'. Now, where do you post your messages in future? We do not want things to be scatered everywhere!
Thanks.
-Chandra
  • #17
  • Feb 5, 2007 10:36am Feb 5, 2007 10:36am
Quoting Chandra
Kevin,
You have three threads active ('Method BB'; 'Method BB Final' and 'Trading method BB'. Now, where do you post your messages in future? We do not want things to be scatered everywhere!
Thanks.
-Chandra
Chandra,

Kevin can clarify this as needed, but here's my 2 pips worth: As the original "Method BB" thread developed, a couple of enhancements were added to the system. Rather than make readers sort through pages of posts just to find them, Kevin started "Method BB (Final)", where the revised method is posted & questions can be asked regarding it.

The "Trading with Method BB" thread in Journal Factory is designed to list specific trades per the BB Method rules for discussion & feedback.
Greetings from Guanajuato, Mexico
  • #18
  • Feb 5, 2007 2:42pm Feb 5, 2007 2:42pm
Perhaps we should have one last post referring people to this thread for trades or the other thread for strategey discussion and then have a moderator close that thread.

Quoting yen44x
Chandra,

Kevin can clarify this as needed, but here's my 2 pips worth: As the original "Method BB" thread developed, a couple of enhancements were added to the system. Rather than make readers sort through pages of posts just to find them, Kevin started "Method BB (Final)", where the revised method is posted & questions can be asked regarding it.

The "Trading with Method BB" thread in Journal Factory is designed to list specific trades per the BB Method rules for discussion & feedback.
Taking Life One Pip At A Time I officially have my own opinion.
  • #19
  • Feb 5, 2007 8:51pm Feb 5, 2007 8:51pm
Quoting yen44x
Kevin,

Just to clarify . . . the EUR/CAD was a SELL on 2/2, and yes I went with 2 lots due to the flat SMA.

I have no BB method trades that are completed yet, but I'm down on NZD/JPY, flat on USD/CHF, and up on EUR/AUD & EUR/CAD.
Oops, my mistake!

Quote
Kevin,
You have three threads active ('Method BB'; 'Method BB Final' and 'Trading method BB'. Now, where do you post your messages in future? We do not want things to be scatered everywhere!
Thanks.
-Chandra

What Yen said!

And I wouldn't worry so much about the "Method BB" thread, whether it's open or closed. I will be most active in Method BB(Final) and this thread. Keep in mind the topics of discussion will be seperate; this thread being more concerned with TRADES ONLY. If one were to have a question about the method, I would send them to Method BB(final).


Anyway how's everyone doing so far?
I'm up 132 pips currently.. Looks like a long CAD/JPY will come up possibly within the next few days to week.
  • #20
  • Feb 6, 2007 12:16am Feb 6, 2007 12:16am
USD/JPY touched the first BB resistance line on my charts today, so it may be lining up as a potential buy also.
Greetings from Guanajuato, Mexico
0 traders viewing now