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BB on Steroids

  • #61
  • Apr 23, 2007 2:13pm Apr 23, 2007 2:13pm
I was checking this one out, too, but if you look close enough, the candle does not actually touch the white band. It's VERY close but doesn't quite touch it, at least on my mt4 chart. Does that invalidate the signal?

Quoting Doji Star
First of all, thank you Kevin for sharing your BB strategy with all of us. I think it's going to bring us all plenty of pips over the coming months!

With regards to Cable's daily chart, would it be safe to assume that I can short Cable as things currently stand? I mean, what could change b4 the close now that the market usually quietens down in the after-market.The 25.15.15 stochs look ready to cross. We have a white sell signal.What do you think of this set-up?

Also, I don't know if anyone read Philip Nel's thread (4hr MACD), but I've noticed that BB on steroids' signals (also 4hr chart)are almost in synch with his strategy's entry points.Go figure!! The two strategies actually seem to serve as additional filters for each other.For example ,Philip's use of moving averages could serve as additional support/resistance for your strategy.He already uses the 21SMA.These are all obviously on the 4hr chart.It's worth having a look at. I haven't backtested it yet,though and I'll keep you posted.
Last question. Would you recommend using your BB on steroids system with a 4hr or even 1hr chart, or would the parameters for entry change too drastically(in and out way too quickly) and the profit margins be a little too small?

Thanks again,Kevin.
Life is too short to have anything but delusional notions about yourself.
  • #62
  • Apr 23, 2007 2:26pm Apr 23, 2007 2:26pm
Potential set-up....
Attached Image
Life is too short to have anything but delusional notions about yourself.
  • #63
  • Apr 23, 2007 2:47pm Apr 23, 2007 2:47pm
Hi Kharvell, dood i think you have a damn good thing here. I dont usually even look at systems cuz they are mainly crap with their makers shooting out fake claims of greatness, but this is definitely a keeper. i did some backtesting on it (with some great success),and now im going to start micro trading it within the way that I trade previously. I just wanted to say thanks for being a good person and sharing great info for people here.
I dream, therefore I become.
  • #64
  • Apr 23, 2007 4:49pm Apr 23, 2007 4:49pm
Quoting hoss
Potential set-up....
this is the only one i saw as an entry today. i'm using FXDD platform. i entered at .9335. my stop is over 100 pips away to give it room to breathe. i don't have a hard limit but will keep my eye on daily 5,3,3 stochs.

how do you post a chart for future reference? thanks
  • #65
  • Apr 23, 2007 4:55pm Apr 23, 2007 4:55pm
Save your chart to your desktop/computer then click on manage attachments when you reply. Then upload the file.

100 pips should be good. The previous 20-day ADR is 70, so you should be ok. I trade with Oanda, so I can't take this trade. I may start using the ADR as a benchmark for stops.

Quoting pipette4x
this is the only one i saw as an entry today. i'm using FXDD platform. i entered at .9335. my stop is over 100 pips away to give it room to breathe. i don't have a hard limit but will keep my eye on daily 5,3,3 stochs.

how do you post a chart for future reference? thanks
Life is too short to have anything but delusional notions about yourself.
  • #66
  • Apr 23, 2007 5:16pm Apr 23, 2007 5:16pm
Quoting hoss
Save your chart to your desktop/computer then click on manage attachments when you reply. Then upload the file.

.
let's see if it works. thanks for the instructions

I put a fib retracement on the daily to determine a decent stop, allowing for some retracement.
Attached Image
  • #67
  • Apr 23, 2007 6:20pm Apr 23, 2007 6:20pm
Quoting hoss
Thanks for the detailed answer, Kevin! One more question. What exactly constitutes coming from inside the channel? Does the open have to start closer to the 21 sma or can it open anywhere inside the blue line, as long as it closes outside the blue line? Thanks, again.
Hey hoss,

Good question. I am still experimenting with this, but for now I will say that it just has to have an open inside the blue channel, and then have a close outside it.

Hope this clarifies,

Kevin

Quote
In trade #6 I do not see the price hitting the white Bollinger Band line. So it is not a short signal?

You may be right. A lot of things are interpretational, here; depending upon brokers' data and what you think is a good sell/buy, etc. I've been using solely bollinger bands for about 3 months now, and stochastics for about a month, and this time has allowed me to get a good feeling for them. But if this signal is not convincing enough for you, just ignore it.

Quote
First of all, thank you Kevin for sharing your BB strategy with all of us. I think it's going to bring us all plenty of pips over the coming months!

With regards to Cable's daily chart, would it be safe to assume that I can short Cable as things currently stand? I mean, what could change b4 the close now that the market usually quietens down in the after-market.The 25.15.15 stochs look ready to cross. We have a white sell signal.What do you think of this set-up?

Also, I don't know if anyone read Philip Nel's thread (4hr MACD), but I've noticed that BB on steroids' signals (also 4hr chart)are almost in synch with his strategy's entry points.Go figure!! The two strategies actually seem to serve as additional filters for each other.For example ,Philip's use of moving averages could serve as additional support/resistance for your strategy.He already uses the 21SMA.These are all obviously on the 4hr chart.It's worth having a look at. I haven't backtested it yet,though and I'll keep you posted.
Last question. Would you recommend using your BB on steroids system with a 4hr or even 1hr chart, or would the parameters for entry change too drastically(in and out way too quickly) and the profit margins be a little too small?

Thanks again,Kevin.

Hey Doji Star,

Thanks for the very nice words! In regards to shorting cable, I'm not so sure of doing this. It is in a clear uptrend, AND MY stochastics(25,15,15) is indicating long still. Again, this could be different broker data, but you won't see me entering this one. I mean not to discourage you from trading because there are times when people using my method win and I lose.

Interesting point on Philip Nel's and my method's correlation. Philip Nel is one smart cookie, and if you could figure out how to come up something combining our techniques with a profitability increase, I would love to hear about it. Please do keep me posted!

I have been looking more into trading shorter-term time frames with our new method. It awaits more scrutiny, but it does appear that you could trade this system profitably. I would limit yourself to only the 3hr(4) or 1hr charts however, because when you get much lower, the market won't trend as much, at least in terms of us benefitting from it. It may be that we need to change some parameters in the BB's. All that will take experimentation, and maybe one of these days we'll come up with it.

Quote
Hi Kharvell, dood i think you have a damn good thing here. I dont usually even look at systems cuz they are mainly crap with their makers shooting out fake claims of greatness, but this is definitely a keeper. i did some backtesting on it (with some great success),and now im going to start micro trading it within the way that I trade previously. I just wanted to say thanks for being a good person and sharing great info for people here.

Hey mike,

Glad you like what you see man! I'm interested in whether you backtested using the stochastics or just the original. Either way, I'd love to see your results when you get a chance. Thanks for the nice words,

Kevin

AND AUD/CAD looks good for a short(too bad I can't trade it)

ALSO, who took short EUR/AUD yesterday? I lost

I shorted EUR/CAD yesterday @ 1.5270 and am up 26 pips, but other than that, not too much going on.

Thanks for the nice words everyone. Wish you lots of luck,

Kevin
  • #68
  • Apr 23, 2007 6:33pm Apr 23, 2007 6:33pm
I'm still in the EUR/AUD trade. I put my stop above the most recent swing high.
Life is too short to have anything but delusional notions about yourself.
  • #69
  • Apr 23, 2007 8:30pm Apr 23, 2007 8:30pm
Thanks Kharvell.
How you act is more important than how you feel.
  • #70
  • Apr 24, 2007 7:30am Apr 24, 2007 7:30am
i'm up 72 so far. the daily stoch still looks strong so i'm staying in. moved my stop just above the center line so my new stop is at .9409
  • #71
  • Apr 24, 2007 8:47am Apr 24, 2007 8:47am
Hi Kevin!

The "BB on steroids" and Philip Nel's 4hr MACD strategy can act as confirmation for entry points.I've noticed that the MACD and White/Blue signals are seldom more than a candle apart,but I've also noticed that the BB strategy gives you one or two extra entries that the MACD misses.
I've randomly chosen the first two weeks of February of this year,but you can try it with any period or with any pair as well, just to illustrate what I mean.The chart attached is Cable's 4hr.Please bear in mind that I still haven't got around to backtest this 'combo', AND I have not used your stochastics filters OR Philip's EMA's and SMA's (resistance and support),etc. These are actually important.Heck,I haven't even counted the pip gains/losses!! This is just to show everyone that there is indeed a correlation between these two fantastic strategies.VERY IMPORTANT:trading is not just about entry signals and anyone who's read Philip's thread will tell you that there's much more to his strategy than just entry points.As you said Kevin,he's a smart guy!
ALSO: I'm not pitting one strategy against the other, just adding my 2 cents as far as strategy refinement is concerned. The more we work and test a strategy that already works the more we empower ourselves.

Here goes:
GREEN ARROWS
TRADE #1:White signal to go long;MACD rounded top confirms one candle later.Stop loss may have been breached,though,depending of course where it was set.Re-entry soon afterwards with MACD confirmation.Re-entry not shown on chart but after inverted hammer??(am I right?) four candles after first vertical red line.
TRADE #2:White signal and MACD confirm entry at same candle opening.
TRADE #3:White signal,MACD rounded bottom signal.Good to go!!!
TRADE #4: White signal AGAIN with MACD confirmation.Good gain of +150 pips.

RED ARROWS (entry points not signalled by MACD):
1st red candle: White signal.Would've made good gains,but no MACD confirmation.
2nd red candle:White signal (+blue signal a candle later) Again...would've scored but for MACD not confirming.

Food for thought...
Attached Image (click to enlarge)
Click to Enlarge Name: bb on steroids+philip nel's 4hr strategy.jpg Size: 90 KB
  • #72
  • Apr 24, 2007 8:49am Apr 24, 2007 8:49am
Quoting hoss
I was checking this one out, too, but if you look close enough, the candle does not actually touch the white band. It's VERY close but doesn't quite touch it, at least on my mt4 chart. Does that invalidate the signal?
You were right,hoss! Looked promising though.That'll teach me not to zoom in every now and then.
I think it did invalidate the signal.Guess I've just gotta be patient.
Sorry for late reply, this 9 to 5 is killing me!!
  • #73
  • Apr 24, 2007 9:18am Apr 24, 2007 9:18am
No problem. I'm 0-1 right now. I lost out on the EUR/AUD trade. The AUD/CAD was a nice one but couldn't trade it because I'm on Oanda. That figures.

Quoting Doji Star
You were right,hoss! Looked promising though.That'll teach me not to zoom in every now and then.
I think it did invalidate the signal.Guess I've just gotta be patient.
Sorry for late reply, this 9 to 5 is killing me!!
Life is too short to have anything but delusional notions about yourself.
  • #74
  • Apr 24, 2007 9:41am Apr 24, 2007 9:41am
Does this trade qualify if it ends up closing at the end of the day outside of the blue band? I get a little confused on how far it must come from inside the channel. It looks like a decent set-up.
Attached Image
Life is too short to have anything but delusional notions about yourself.
  • #75
  • Apr 24, 2007 10:45am Apr 24, 2007 10:45am
Quoting hoss
Does this trade qualify if it ends up closing at the end of the day outside of the blue band? I get a little confused on how far it must come from inside the channel. It looks like a decent set-up.
It looks like a sell Blue Signal to me. If it stays like it is of course. If it pulls back but closes between the blue and white bands, it is a white buy signal,because it has touched the white band and then closed inside.

Hope this helps.Sometimes I confuse myself.
  • #76
  • Apr 24, 2007 10:51am Apr 24, 2007 10:51am
Kevin,I was wondering,...would you suggest trading on Non-Farm Payrolls Friday or Fed Rates Day,etc? The reason why I'm asking is that sometimes on importanat news ,there's heavy volatility in the markets and it's easy to get whipsawed. Though today's news wasn't probably that important, it could be the reason for some VERY long candles on our charts today.
I know that BB strategies often rely on this 'breakout volatility' but sometimes the whipsaws are too rich for my blood!

I'd really appreciate your thoughts on this...
  • #77
  • Apr 24, 2007 10:56am Apr 24, 2007 10:56am
With the revisions that Kevin made, the white signal would be negated by the direction of the stochs. So, it's either blue trade or nothing here.

Quoting Doji Star
It looks like a sell Blue Signal to me. If it stays like it is of course. If it pulls back but closes between the blue and white bands, it is a white buy signal,because it has touched the white band and then closed inside.

Hope this helps.Sometimes I confuse myself.
Life is too short to have anything but delusional notions about yourself.
  • #78
  • Apr 24, 2007 2:11pm Apr 24, 2007 2:11pm
Another set-up on the EUR/AUD. This time long. It's hard to see the 25,15,15, but it has crossed up.
Attached Image
Life is too short to have anything but delusional notions about yourself.
  • #79
  • Apr 24, 2007 3:20pm Apr 24, 2007 3:20pm
what broker are you using for your trades? I've been using FXDD and the daily candle closes at 5pm? time of day could make a difference in all our results. IBFX closes 2 hours later.

So it's time for me to go do my analysis and see what's cooking. i'm checking all pairs available to me with FXDD

Pipette
  • #80
  • Apr 24, 2007 3:33pm Apr 24, 2007 3:33pm
i see 2 Blue light specials: the euro (long) and the swiss(short). the euro gives me pause because if you look at a monthly chart, we are SO close to a high from dec 2004. I'll demo trade it but will note this level. if this were real money i'd pass entering until that level was broken.

I see no white signals today

I looked at the e/a and on my charts, the wick touched the blue BB but it's going to close below it.

Anyone else's opinions?

Pipette
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