Scalping system #7 (Great GBP/JPY 1M scalping strategy)
Submitted by Chelo on November 24, 2007 - 15:39.
So here is a strategy I have trying to work out fot the past month, and I seem to be getting better at it. What would be very nice, is if anyone can help me tune it a bit more.
Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:
1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)
(the template for this bollinger bands can be downloaded form this post)
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Hi,
Some trading platforms require to enter only two values: Bollinger band period and deviation
then the settings for BB would be (200, 2) and (200, 3).
Some allow to enter separate deviation values for upper and lower bands, then you'll get (200, 2, -2).
It is all the same though.
I was probably thinking about bands on both sides while typing the message... Sorry.
I'll post a screen shot of my charts on Monday.
Regards,
Edward
Here is the screenshot:
Regards,
Edward
Hi Edward, thanks for sharing so much useful information. I believe the key to success is collaboration. One question, which set up is best? BB(200,x) or the one Originally posted by Chelo, BB(50,x)?
azFx
Hi azFx,
What can I say. We all gave our variants. If you ask me, I'd say BB (200,x) is good, if you ask Chelo, he would recommend (50,x). Testing and seeing for yourself would probably give you the best answer which Bollinger band settings to use.
Regards,
Edward
Hi Guys, am new to this scalping TS. its looks quite promising. there are the issues of fake signals when price stubbornly trades alonig the BB and wont reverse, but to be expected, no system is perfect. It seems to give consistent 5-10 pip grabs, in over 70%+ succss rate.
Chelo/Edward any further suggestions, tweaks, ideas. you guys still trading this? anyone using it for real in a live a/c and making real money out of it?
dear edward,
could suggest a stoploss (as a number for this system) cause some times it take 100 pip to get the target and some times it get 1 minute to get the target.
so could be please suggest a resanable number forstop loss not too high and not soo tight.
waiting for your reply
I'd use 10 pips at most.
Regards,
Edward
Hi guys
Here is what I found lately among other comments made by Ed at this web:
"Actually there is one very effective and simple Forex system based on Bollinger bands. It goes as follows:
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Indicators: Bollinger bands (20, 2) applied to close.
Once ranging market is identified, traders work with candlesticks that touch upper and lower bands of the Bollinger band indicator:
If a red candle touches the upper Bollinger band, go Short with a new candle open.
If a green candle touches the lower Bollinger band, go Long with a new candle open.
If a green candle touches the upper Bollinger band, wait. If next candle closes in red, then go Short with a new candle open.
If a red candle touches the lower Bollinger band, wait. Only if next candle closes in green, go Long with the next new candle open.
Stops are couple of pips away from the last candle to touch BB.
If a signaling candle also touches middle Bollinger band on the close, refrain from entries as a correction has high chances to occur. "
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Thought we may use it to time the entries for our scalping...
What do you think?
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