Revert to the Mean

In a very strong trend the prices will go to opposite band but not until after a long consolidation which tightens the bands. Usually there is a sudden dip or two that doesn't quite go to the opposite band. That is where the exit is for situations like this. Better to exit with net profit after 5 hours rather than try to wait for a couple extra pips and end up waiting 20 hours for a net loss.

This was sheer luck.
I would have missed the two safe exits.

Have you considered trading away from the mean?

Look at your entries a lot of them would have been really profitable had you traded away from the mean.

Perhaps you could try trading both ways but trade them as separate trading methods where one does not affect the other, I personally cant handle trading that way at least not yet...but maybe you can...just an idea

Yes. thanks. I am open to seeing how to maximize these signals. Profit is only realizable when risk is managed. If I could see how to manage the risk in trading away from the mean, catching those long runs I would do it. What I am learning seems to come in spurts and starts. Something completely obvious seems to remain hidden and the at some point, while I'm brushing my teeth or taking a walk. Ah ha!! there it is. I'm going to trade the reversal next week. Can hardly wait for the market to open Monday London. Take this for a spin in a live market. Which is heck of a lot different from trading the simulator. (have to be up before 2am EST yikes) The psychological pressures just aren't there in a simulated trading experience. The psychological pressures are at least as significant as the strategy itself for decision making.

Don't take the first signal. Like here..
there was a close below the lower band and then a close above the lower band. That is a buy signal. But it is the first buy signal.
Sell here. and use the 200 sma as trailing stop.
Wait for a decent move in a trend and take that signal to buy.
It is not necessary to wait until prices reach the opposite band. any time there is a decent profit take it.
three hours for a trade is plenty.

Using two different accounts trade buy and sell.
Alright... Ready to go with this for the first time live in 5 hours...
London...

Up at 2. So got that far...
And in with a buy.
If prices came inside the band it would have been a definite signal..
But a close outside is acceptable..
The main thing is it the first cross of the band.

with a close inside the band.. sell. almost but not.
which is great... the buy is going deeper into profit. the stop trailing the 200 is getting smaller
and the op for going short is getting better the higher it moves.

Could be a really great trade...
The stop for the buy following the 200 is just above open. So no possibility of loss only a matter of how much gain..
And after almost 2 hours of trending still no signal for a short. So it is a strong trend.
I hope I don't get spoiled with a perfect trade on the first time out...

Okay. There's the signal for sell.
So there is a buy and sell open.
Have to be careful I make sure I am trading the right account. US regulators won;t allow hedging.
Almost opened the sell in the same account with the buy which would have closed the buy prematurely.
Such a dumb rule. No hedging. the US is pretty dumb place right about now in a lot of ways.

I'll have to get up around 1:30 to be able to trade this. For now I think I have 15 minutes or so that I can clean up.

This signal is not strong enough. The next signal to sell should be after a break out. if this is the top the trades both buy and sell should be profitable. To sell here could cause a problem if the trend resumes in a strong way.

Good signal for the second sell. A decent amount of distance from the first sell. There wasn't a run up outside the bands, but there was a decent run up from the recent consolidation.
The buy is still open, almost stopped out at the 200 but didn't.
Have not looked at the calendar. I just want to trade the charts as they are. Purely technical.

A third sell, and the buy is still open.
watching the 200 ema, may be better to use as a trailing stop...

The buy stopped out at the trailing stop 200 sma. 99 pips. took 6.5 hours.
The three sells are open and waiting for the reverse to the opposite band..
Watching different sma's. 400, 600, and 800 as possible exits since sometimes there will be a quick plunge not quite to the opposite band..
Am thinking there there may be limit orders placed along the sma's.. and it would be a good exit if there is decent profit.
The bands tighten and waiting 5 or 6 more hours for the prices to reach the opposite band can mean less profit and a longgggg wait.
If there is another break out then I will take a fourth signal for sell.

Alerts set for 600 sma and upper band...

Entered a fourth short.. The prices have not closed outside then inside the band but it has been a good run up.
There is a possibility it will not breakout and I need the fourth short to offset the loss that will be the 1st short.
If it does break out higher I will short again for 5 positions..

Just guessing but I think prices meet the lower band at support (the red line) where it was tested twice earlier.
the sells won't bring in much net gain but I should be able to keep the gain from the buy.

Opened another sell the 5th one. May have to open a 6th sell.

Definitely harrowing..
opened 6th sell
London is closing in a couple of minutes.
It can be spectacular when it turns around..
If it turns around