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BB on Steroids

  • #1
  • First Post: Apr 16, 2007 12:21am Apr 16, 2007 12:21am
A rather profitable method, even if I say so myself, and I say this having backtested it with a year's worth of data(either a good or bad thing). I'm posting this for the sake of improving it and a guilty conscience, but if you have questions, no worries.

I only trade this method on GBP/JPY, GBP/USD, and USD/JPY (correlated, and I like it like that.)
Attached File(s)
File Type: pdf BB on Steroids.pdf   175 KB | 8,754 downloads
File Type: pdf BBComplete.pdf   23 KB | 4,924 downloads
  • #2
  • Apr 16, 2007 12:32am Apr 16, 2007 12:32am
Great work Kharvell!
  • #3
  • Apr 16, 2007 12:51am Apr 16, 2007 12:51am
Amazing!

An other BB method from you was exactly what I wanted.

You're a nice person, sharing this with us!

Thank you!

regards
Dennis
  • #4
  • Apr 16, 2007 1:09am Apr 16, 2007 1:09am
Thanks..great
  • #5
  • Apr 16, 2007 1:52am Apr 16, 2007 1:52am
Kevin,

Well, the cat's out of the bag, and I'm sure that our community of traders will benefit greatly from BB on Steroids.

I'm equally convinced that a very good method of trading can be enhanced even more as input is received from others.

Kevin was kind enough to let me "test drive" the improved system for a few weeks. I think he would agree that, as it turned out, it probably wasn't the greatest time to determine the long-term success of the system.Kevin and I have chosen similar pairs to trade (he has 3, I use the same 3 plus USD/CHF) based on our individual back test results, but all those pairs have been somewhat quirky over the last few weeks.

I think all of us will come to really enjoy the "new and improved" BB Method over the next few months.

Feel free to fire away if I can be of any help with questions.
Greetings from Guanajuato, Mexico
  • #6
  • Apr 16, 2007 2:38am Apr 16, 2007 2:38am
Thanks for sharing kevin!!!

Hope u make tons of pips with it!!!!
Matty
  • #7
  • Apr 16, 2007 2:47am Apr 16, 2007 2:47am
This system looks good. The only problem with me is that, unless I am doing something wrong, MT4 does not allow 1.5 as BB setting.

Anyone else using MT4?
  • #8
  • Apr 16, 2007 2:58am Apr 16, 2007 2:58am
Hi Kharvell

This seems like a nice system. Will definitly do some backtests of my own to get the feeling for this system. One question though.
Do you put pending orders when price aproach the bands from the inside channel or do you enter with market?

Regards

Eben
  • #9
  • Edited 3:03am Apr 16, 2007 3:01am | Edited 3:03am
Quoting ssotiro
This system looks good. The only problem with me is that, unless I am doing something wrong, MT4 does not allow 1.5 as BB setting.

Anyone else using MT4?
You have to use the "Bands.mq4" indicator as Bollinger Bands doesn't allow halved figures.
Attached File(s)
File Type: mq4 Bands.mq4   3 KB | 1,614 downloads
  • #10
  • Apr 16, 2007 6:55am Apr 16, 2007 6:55am
Quoting Ebenst
Hi Kharvell

This seems like a nice system. Will definitly do some backtests of my own to get the feeling for this system. One question though.
Do you put pending orders when price aproach the bands from the inside channel or do you enter with market?

Regards

Eben
Hey Eben,

No orders. Just BUY/SELL near the close of everyday. The reason for this is because with an order, it could be possible that your order gets filled as a "White signal" when in actuality the price leaves the channel thus being a "BLUE signal". It is best to wait for the close for this very reason.


Thanks for the nice comments guys! I hope we all make tons of pips with this! Thanks to doblece for posting the bands indicator(forgot to do this myself!)

Best of luck,

Kevin
  • #11
  • Apr 16, 2007 7:04pm Apr 16, 2007 7:04pm
Kevin, Thanks for your generosity. May the good karma be with you. The rules couldn't be clearer but just want to confirm, the blue trade exit is always a white trade entry signal?
  • #12
  • Apr 16, 2007 10:15pm Apr 16, 2007 10:15pm
Hi Kevin,

Are you aware of the chronological sequence issues in your backtest results you posted? Do you have multiple positions on while trading this or just a single one in any direction at a time? Just trying to do my own due diligence as I've enjoyed your previous BB ideas.

If you're still in D/FW we should meet and talk markets sometime.
  • #13
  • Edited 11:22pm Apr 16, 2007 10:32pm | Edited 11:22pm
Greetings, some of you know i just can't resist a doodle. About a year and a half ago i read "Bollinger on Bollinger Bands" and became very interested in the idea of using dual bands. At that time I created an indicator and did quite a bit of testing, and now, reading this thread, for an in-context use I have reset the defaults to what Kevin has called for. Basicaly what i did is add a second band, both of which can have the deviation set out to .xx decimal place. I was actually using fibo numbers during some of my tests and so needed the 1.62 (close to the 61.8 thingy)...that's why i codded it out .xx places.

Here is the indicator that will automaticaly draw both the BBs as kevin is suggesting:

ATM_DualBollingerBands.ex4 compiled version or ATM_DualBollingerBands.mq4 uncompiled version
Have fun,
Thom
The Happy Doodler
  • #14
  • Apr 16, 2007 10:43pm Apr 16, 2007 10:43pm
have you thought of automating it?
have you used gimme bars before?
thanks for the contribution and may the karma be with you.
i just read through the rules so now i'll begin looking through charts. if i come up with something to add to stoploss or money management i'll reply for brain storming efforts.
jeff s
It really is that easy.
  • #15
  • Apr 16, 2007 11:42pm Apr 16, 2007 11:42pm
Quoting mikeh3855
Kevin, Thanks for your generosity. May the good karma be with you. The rules couldn't be clearer but just want to confirm, the blue trade exit is always a white trade entry signal?
Yes, that is correct. I have also thought of moving the stop to the extremes of reversal bars. So, for instance if we get a doji after a LONG run, we would move the stop to that low of that day. It could be any reversal bar, like a shooting star, or engulfing pattern. I think mostly I will use this method of exit unless it doesn't give a fair amount of room.

Quote
Hi Kevin,

Are you aware of the chronological sequence issues in your backtest results you posted? Do you have multiple positions on while trading this or just a single one in any direction at a time? Just trying to do my own due diligence as I've enjoyed your previous BB ideas.

If you're still in D/FW we should meet and talk markets sometime.

Yes, I am aware of this. The reason for this is because the data is sorted by exit date because that is when we actually get our pips for money. And meeting up sounds good. Just PM me your availability and maybe we can work something out.

Quote
Greetings, some of you know i just can't resist a doodle. About a year and a half ago i read "Bollinger on Bollinger Bands" and became very interested in the idea of using dual bands. At that time I created an indicator and did quite a bit of testing, and now, reading this thread, for an in-context use I have reset the defaults to what Kevin has called for. Basicaly what i did is add a second band, both of which can have the deviation set out to .xx decimal place. I was actually using fibo numbers during some of my tests and so needed the 1.62 (close to the 61.8 thingy)...that's why i codded it out .xx places.

Here is the indicator that will automaticaly draw both the BBs as kevin is suggesting:

ATM_DualBollingerBands.ex4 compiled version or ATM_DualBollingerBands.mq4 uncompiled version
Have fun,
Thom
The Happy Doodler

Hey accrete,

Did you use your BB's set at fib #'s like I have shown? I would be interested in a comparison in results to see if the fib #'s look good.

Thanks for the indicators!

Kevin

Quote
have you thought of automating it?
have you used gimme bars before?
thanks for the contribution and may the karma be with you.
i just read through the rules so now i'll begin looking through charts. if i come up with something to add to stoploss or money management i'll reply for brain storming efforts.
jeff s

Hey Jeff,

I have no interest in an automated EA since I have a Mac and it can only run Oanda(which doesn't run EA's). Depending on its popularity, I suppose one could make one. It's pretty easy to just spend 15 minutes of looking at your chart near the end of the day though. Depending on how lazy you are, an EA could be a good idea Look forward to hearing your feedback. I will tell you right now that the best pairs are GBP/JPY, GBP/USD, and USD/JPY(I have tested many).

Best of luck to everyone,

Kevin
  • #16
  • Apr 17, 2007 3:50am Apr 17, 2007 3:50am
Quoting kharvell
...Hey accrete,

Did you use your BB's set at fib #'s like I have shown? I would be interested in a comparison in results to see if the fib #'s look good.

Thanks for the indicators!..
Hi Kevin, thx for the kudos and your input also on the reversal signal concept/tips. I went ahead and also downloaded the BB Method Final PDF and didn't see the mention of FIBO #based Band settings, did i miss something? I was using 1.62 for the inner and 2.38 for the outer during my dual band testing, though i had not worked out the details as you have done so well in your two methods, my basic entries were along similar lines using the sustained break of the outer band as a long and reversal from outer to inner as a signal to shoot for the middle band. Also, i was looking at the hourly charts with a 21sma so my figures and backtest would make much sense in this daily model (which i am very interested in!).

: ) Thom
  • #17
  • Apr 17, 2007 5:14am Apr 17, 2007 5:14am
I allways though that the previous method used to many BB level... This improved method is indeed improved ^^ Good job in this one, i'll give a new try
  • #18
  • Apr 17, 2007 6:13am Apr 17, 2007 6:13am
Quoting WHTenn
Great work Kharvell!
thanks for ur mtd and for ur effort.
  • #19
  • Apr 17, 2007 4:24pm Apr 17, 2007 4:24pm
Quoting accrete
Hi Kevin, thx for the kudos and your input also on the reversal signal concept/tips. I went ahead and also downloaded the BB Method Final PDF and didn't see the mention of FIBO #based Band settings, did i miss something? I was using 1.62 for the inner and 2.38 for the outer during my dual band testing, though i had not worked out the details as you have done so well in your two methods, my basic entries were along similar lines using the sustained break of the outer band as a long and reversal from outer to inner as a signal to shoot for the middle band. Also, i was looking at the hourly charts with a 21sma so my figures and backtest would make much sense in this daily model (which i am very interested in!).

: ) Thom
Hey Thom,

I think you may have misunderstood me about FIB #'s. I was asking YOU if you'd worked with them(I've never tried fib #'s), and that sounds interesting trying the 2 BB's at fib #'s. If you have the time to share the results you come up with testing the 2 FIB BB's you use, I would love to see them. Thanks! When you trade on the hourly charts, do you just use the 21 SMA to act as a filter(i.e. if slope up=long, vice versa)?

Regards,

Kevin

Thanks for the nice words guys. I'm glad you like it.
  • #20
  • Apr 18, 2007 1:05am Apr 18, 2007 1:05am
Hi Kevin, ah, thx for the clarification. Understood.

I looked at the inner 1.62(8) band as a no trade zone of sorts and the middle band as the TP if coming off the outer 2.38(2). What i like about what you've discussed in this model is the idea of not only entries for a ranging market, but also a trending market. I'll dig in my logs and see if i can find any info of value. And yes the 21sma was used as a trend-filter of sorts, though i would utilize the play off the outer bands in a contratrend manner as you have suggested here also. I also doodled with the idea of utilizing the 24sma, there wasn't much difference except maybe a mental one knowing there are 24 one hour periods in a given day...but i've played with the MAs enough to know that just about any numbered MA can be profitable with the right trigger-man (0r woman!).

: ) Thom
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