Bollinger bands 5 min chart EURUSD trading Idea

Looking for input on this idea, I have only back tested one month, been looking for a simple trading strategy that I can use between 8am and 9am uk time. hope you like.


Indicators and chart set up
5 minute chart
Bollinger Bands 20, 1.65
Moving average 60SMA
Pair EURUSD

Rules
Trade only between 8am to 10am UK time, and only take the first two trades.
Short Trades
Wait for a candle to close above upper Bollinger bands, this should alert you to start watching, once a candle closes below the upper Bollinger band sell two lots, a close above the last high is your stop. The stop is often only 15 to 30 pips.
Take Profits
My fist target is 15 pips once hit more stop on the other position to 10 pips above entry, I take profits on my other position at 30 pips.
Long Trades
Wait for a candle to close below lower Bollinger bands, this should alert you to start watching, once a candle closes below the lower Bollinger band buy two lots, a close below the last low is your stop. The stop is often only 15 to 30 pips.
Take Profits
My fist target is 15 pips once hit more stop on the other position to 10 pips above entry, I take profits on my other position at 30 pips.
The 60 SMA
I’m using the 60sma to gauge the trend mainly looking at the slope of the 60sma, if sloping up the trend is up this can help with taking profits on the second position you can sometimes stretch it to 50 to 70 pips.

Hi Pipmonseter,

Very nice idea you have brought on the plate. If you don't mind, here is my suggestions.

The setup for trade is exactly the same. However, if you trade it on a 1hr chart, you will get more for your effort. Your risk will be more, however, your return will be worth it.

A 5min chart is great becos of the lower risk, however, look at the reward potentials as well. You may not need any other indicator with this nice idea. However, I advice you use sup/res with it.

Take a look at the pic below. I have pointed out some of the trades starting from Monday.

The RR is very very nice. What I advice is that you take 2 trades as below:

1 lot with SL at the last low and TP to be equal to the risk
1 lot with same sl and TP to be 3-5 times the risk. Move to BE once TP 1 is hit.

Cheers and happy trading.

Thanks IBUKS it does look more profitable attached my spread sheet of my back test over the last month, however August was choppy not sure this system would work well in trending markets. My main issue is I only have a couple of hours every morning before going to work, so not sure I could trade this system between 8am and 4pm might need some email alert
Made a couple of modifications to the rules
only take trades between 8:00am and 4:00pm
If SL less than 50 pips add 8 pips to stop and first TP
Enter on 1 hour pinbar after one close above or below the bands.
My second TP target was based on a trade signal in the other direction.

Hi, looks like a nice and simple system. What is the use of 60SMA? You didn't mention anything about it.

Attached Image

Currency Pairs: EUR/USD, GBP/USD and GBP/JPY
Trading Sessions: EURO and US
Timeframe: 5 Min
Indicators: Bollinger Bands (default settings)
Rules For Long Trades
1) Bollinger Bands must slope up.
2) Go long when the price touches the middle BB band from above.
3) Set stop loss at the lower band or max 15 pips (whatever comes first).
4) Take profit at the upper band.
Rules For Short Trades
1) Bollinger Bands must slope down.
2) Go short when the price touches the middle BB band from below.
3) Set stop loss at the upper band or max 15 pips (whatever comes first).
4) Take profit at the lower band.
EURO/USD Trades Explained (see picture above)
Trade 1:Bands slope up >> long at 1.3981 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the upper band 1.3999 for 18 pips profit.

Trade 2:Bands slope down >> short at 1.3986 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3971 for 15 pips profit.
Trade 3: Bands slope down >> short at 1.3982 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3964 for 18 pips profit.
Trade 4: Bands slope down >> short at 1.3975 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3958 for 17 pips profit.
Trade 5: Bands slope down >> short at 1.3965 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3950 for 15 pips profit.
Trade 6: Bands slope down >> short at 1.3941 (middle band).
Stop loss at the lower band or max 15 pips.
Stopped out the at upper band 1.3950 for 9 pips loss.
Total Trading Results:
+74 pips in 6 hours of scalping the EUR/USD 5 min chart

I've taken it from here:
http://www.forexstrategiesresources....-min-scalping/

Redwed...
Thanks much for passing this along...
I've been looking for something short term to add to my end of day trade charts...
This is simple, straight forward and good R/R as well...
Good trading to you...
Cliff

Hope you earn enough pips with it!