Bollinger barbeque, +3270 pips in 6 months - Stock Market Forum, Penny Stocks, FOREX, NASDAQ, AMEX, NYSE, Live Chat

freeforexguides · #1 07-30-2009, 04:17 PM

Look below

freeforexguides · #2 07-30-2009, 04:19 PM

Something happened, but here is my method again.

This is a method have been backtested and paper traded from January to June this year with a result of 3270 pips profit.

It is adjusted to be traded at 1H time frame and GBP/CHF, but I'm sure it will work with many pairs with a little tweaking.

What do you need?

EMA 250
Bollinger bands period 20 and deviations 2.0
Bollinger bands period 20 and deviations 2.5

What is the EMA for?
That is our "trend" indicator.
If price is below we are ONLY interested to sell.
If price is above we are ONLY interested to buy.

How about the Bollinger bands?
We know that price likes to stay between the bands most of the time, and some times price go wild and explodes in either direction.
But most of the time price respects the BB as support/resistance.

There are two kinds of trades from the BB.

* Based from the outer bands

* Based from the middle band (which often leads to those wild explosions)

freeforexguides · #3 07-30-2009, 04:21 PM

Stop loss
I have choosen a sl at 60 pips

How to trade
Lets look have a look at this pic:

The price is above the EMA so we are only looking for long entries.

If you look at number 1. That is a trade based on the outer band. The price has been down touching the outer bands, but the trade is excecuted when the first green candle is closed. The trade could even had been excecuted at any of the two little candles before.
But an important rule is: only enter long on green candles and short on red candles.

Number 2 is our take profit level. Normally when the trades are based on the outer bands, I take 50% of at the middle band and the rest 50% at the opposite band. But at this trade there was not room to take profit at the middle.

If you look at the candles right after number 2, they are all covering the area between the outer band and the middle. The area between the bands are also quite thin so we DO NOT trade there. That's usually and indication of a big move. As you can see we get a explosion downwards.

The price is still above the EMA so we are still ONLY looking for LONG entries. After a move like that with the angle of the BB we want to see two green candles, before we go long.

We get our two green candles at number 3, so we enter long with first 50% take profit at the middle band and the rest 50% at the opposit outer bands.

Our TP's are hit at 4 and 5. When the first TP are hit at number 4, SL is moved to atleast break even. If you do not want to risk your winnings it could be moved closer to the middle bands at round numbers or support/resistance.

At number 6 we see that price has been below the middle band and a little green candle is shown. We enter long with 50% take profit at outer band. The rest 50% we are going to use a trailing stop.

After number 6 the price goes below the middle band but never actually touches the lower bands. (Thats why we have 60 pip SL) When the price breaks the middle band again from below, that often leads to a BIG move upwards. Our first TP is hit at number 7.

When the price decides to rise, we gently move our SL 10-15 pips below the low of the previous bar. That some times leads to massive +200 pips profits .

Feel free to comment...

**greencat** · #4 07-31-2009, 12:07 AM

Nice post, I am going to try it and give an honest opinion. It looks promising even though I have a little to early on the trigger finger sometimes tring to outguess the market but that is usually on micro lots.

**greencat** · #5 07-31-2009, 12:21 AM

Quote:

Originally Posted by freeforexguides

Something happened, but here is my method again.

This is a method have been backtested and paper traded from January to June this year with a result of 3270 pips profit.

It is adjusted to be traded at 1H time frame and GBP/CHF, but I'm sure it will work with many pairs with a little tweaking.

What do you need?

EMA 250
Bollinger bands period 20 and deviations 2.0
Bollinger bands period 20 and deviations 2.5

What is the EMA for?
That is our "trend" indicator.
If price is below we are ONLY interested to sell.
If price is above we are ONLY interested to buy.

How about the Bollinger bands?
We know that price likes to stay between the bands most of the time, and some times price go wild and explodes in either direction.
But most of the time price respects the BB as support/resistance.

There are two kinds of trades from the BB.

* Based from the outer bands

* Based from the middle band (which often leads to those wild explosions)

Do you stictly trade off the 1 hour chart?

**greencat** · #6 07-31-2009, 12:25 AM

31 july 12:30 eastern time. Around 700 GMT.

Your system has a sell coming up on the first red candle. My system has a sell at 1.4146 on the euro. Might not make it. this is interesting.

freeforexguides · #7 07-31-2009, 05:02 AM

Hi greencat,

Yes I only trade it on 1 H with GBP/CHF and EUR/JPY. I figure you got your sell signal at the EUR/USD? I have not backtested it for EUR/USD it should be fun to see your results.

I'm currently trying to adapt it to 1 day EUR/USD due to all the screen time it takes at the 1 H charts.

**greencat** · #8 07-31-2009, 06:05 AM

Quote:

Originally Posted by freeforexguides

Hi greencat,

Yes I only trade it on 1 H with GBP/CHF and EUR/JPY. I figure you got your sell signal at the EUR/USD? I have not backtested it for EUR/USD it should be fun to see your results.

I'm currently trying to adapt it to 1 day EUR/USD due to all the screen time it takes at the 1 H charts.

I promised an unbiased report on this system and I must admit that I am really enjoying it. Your system was a sell at 1.4125 and I had a sell at 1.4146.

Initially you fell down 20 pips but came roaring back and took half profit at
1.4089 for 36 pips. By now your stop loss would be at break even so the worse you would do is 36 pips.

The price went to 1.4145 which means I was off by 1 pip on my analysis. But since I fell asleep and was not watching I missed the play altogether. My bid did not hit. Greencat 0 pips.

Ths is a real easy system that anyone could apply and make lots of green. It want win everytime but premlinary test show well over 70% depending on stop losses. I think with a 60 pip stop loss it is going to the 90% range but I still will want test it some more.

I am now a fan of this system and you get the SMC and greencat seal of approval. Really nice job and thanks for sharing it

freeforexguides · #9 07-31-2009, 09:40 AM

Thank you very much. I think it manages the most scenarios, but we should be very careful when price is too close the EMA.

**greencat** · #10 08-02-2009, 11:15 PM

Quote:

Originally Posted by freeforexguides

Thank you very much. I think it manages the most scenarios, but we should be very careful when price is too close the EMA.

I spent a lot of time this weekend reveiwing this system. When staying with-in the rules the win/loss ratio will be high enough to make anyone a winner.

Of course I am not going to stay in the rules becuse of a high risk tolerance and will play everyone I see. I am tweaking it a little of the MA250 is not corresponding and using some fibs to see if that will help make a better call. I will also wait till the next set-up and do it again. I even took a play off the 15 minute chart today but the 1 hour had made a case as well. I just waited to see it it would pop up again and it did.

This system fits me for the 1 hour chart and will try to keep it updated when I pull the trigger. Once again I thank you for sharing it with us. And please post more.

The chart shows my entry. I have since took 1/2 profit and set my stop loss to break even.