1hr binary strategy system

This is a strategy I've seen on different forums before, and I believe I've improved it overall for better results. Firstly what you will need for indicators are as follows:

1) BOLLINGER BANDS (14,2.0)
2) INTRADAY DAILY PIVOTS

So in a nutshell the workings of this strategy is when price breaks the bollinger band, for instance the upper bollinger band and price closes firmly above it we place a PUT trade. When price closes firmly under the lower bollinger band we place a CALL trade.

So what im looking for on ONLY FOREX PAIRS 1hr charts is for price action to close above or below the bollinger band, where the close of the bar is visually without a question of a doubt outside of the bollinger band. Next, the price close needs to be not only above or below the bollinger band, it also needs to be above or below the R1 and S1 pivot lines. So for instance if the upper bollinger band is broken and price has firmly closed above it, I also need to see that the close price is AT LEAST above the R1 pivot line, then my trade is ready to place a PUT order.

The logic of this system to me is price is already over extended being outside the bollinger band, and the price also being extended either over the R1 or under the S1 means its due a one bar pull back, which is essentially the bar you WIN the trade. The higher price action is for instance the R1 going to the R2, or the lower price action is to S1 going to the S2 the better because price being over extended that far will be due a bar pull back.

Sometimes when the trade has gone against me and lost that trade, but the closing price is still firmly above or below the bollinger band, I retake it and double my stake(martingale strategy) More often so it will win. I do however allow one more double up for a third and final trade, which can happen and normally wins, but in that rare instance it doesn't I finish up for the day.

Ive had great success with it and just want to share it to see if others on here like it, or even improve it, either way as it stands its a pretty decent strategy that has the consistency to generate more wins than losses

Interesting, I use a similar start for M5 but enjoy FX more. What are your BB settings and do you have an Intra-Daily-Pivot Indy or do you place it manually?

Thanks and green pips with your BO trading!

my bb settings are (14,2.0) for my intraday pivot points are already calculated with indicators so i just place the intra day pivots

Ive added screen shots to demonstrate as well. In the first shot is a clear example of close price being above the R1 and the bollinger so good to place a PUT trade. I did and the winning bar was the last bar. Second screen shot shows a trade that lost, but the bar that lost was still under the bollinger band so i re entered, the last bar showing in the shot is of the current price bar and im in that trade. The last shot is the final close of the second trade that Ive doubled up on and its a winner.

I've used a similar strategy in the past -you can have long strings of winners, but in the final analysis the results are negative. The martingale will do you in, as well as some future news event that carries prices way beyond BBand limits in consecutive bars in the same direction. Your redeeming features are (1) you are using binary's as your trading vehicle and that limits your loss on any one trade to your option price and (2) you have well defined entry criteria that, if followed ,means that you will only enter trades under when market conditions are firmly in your favor.My advice based on my experience: avoid BBand breaks that are caused by news events(you never know how far they will carry) and avoid breaks that create new trends (they can become stronger outside the BBands).Good trading luck to you and please keep us updated on your results. Further suggestion: from your choice of 14-2 BBand perameters it appears you may be using Oanda charts (thats their default numbers) Oanda restarts there BBand chart configurations at the beginning of each week. resulting in narrow BBands at the beginninig of the week that become normal towards the end of each week. I would suggest that you consider using netdania charts that are continuous in nature with 20-2 perameters as they more accurately reflect existing conditions regardless of whatever day is involved. The other advantage of netdania is they give you a numerical value of BBand measurement rather than having to eyeball it to determine the close relative to the BBand.,Hope this is of some assistance to you.

BB mostly work in sideways action.. Ones your BB breaks down or up (open wide), that's usually signals start of a trend.
And As those guys said? "Trend is your friend" you want to follow the move a.k.a open trades in
the direction of the breakouts not to short them in hope to return into range.. 10/4 that's my 2c.

Thank you eyeball for your post, youve definitely given me food for thought. Yes as a rule of thumb i never trade during news times anyway, and as im trading hourly i know well in advance if news is a factor so i never fall victim to that. Its funny ive never traded where i see price action divert away from the BB bands without shortly coming back to the BB. I should of also posted that i only trade during the hours of 8am GMT to 6pm GMT where the volatility is. I guess i prefer to trade the 14,2.0 BB settings because while i was back testing manually (2years worth of data) i noticed more trades over a day period than the other settings of 20,2.0 that rarely set up trades daily in my opinion. I will be looking into your suggestion of "netdania" as it will be potentially of extra benefit having a numerical value of the BB measurements, as sometimes i have got caught out entering prematurely into a trade that 1min to entry looks like its above the BB line then changes as ive entered. Thanks again eyeball

UPDATE UPDATE UPDATE UPDATE


Ive noticed a better success rate recently when you only take the trades that have touched or reached the R2 and S2 and then have set up the way i originally explained. There are fewer trades yes, but across the forex pairs in the given timeframe of 8am GMT and 6pm GMT there are enough set ups in a day to work with.
Its a small change but i prefer this as in my opinion makes it higher probability due to the over extension