Scalping system #14 (EURUSD scalping with Bollinger Bands)
Submitted by User on April 15, 2010 - 16:05.
Submitted by Hessel
Currency: EUR/USD
Time Frame: 5M, 1M
Before I explain my simple scalping system, I have to thank Chelo who posted ''Scalping system #7''. I love the simplicity of the system, and it seems to work pretty well! However, I was not fully satisfied about the entry-rules and the stop loss. Prices can move up and up and up between BB 50-2 and BB 50-3.
So I thought about tuning the system up a little bit, making the entries more reliable.
Read entire post >>>
Hi there, my name is Hessel van der Hoeven and I'm from Holland. I submitted this strategy four days ago without being signed up for any forum or something like that. This explains why I wasn't able to add a Username for instance. I was wondering if this could be changed? I would like to see my name above this scalping system.
About the system then...
Newboy, when prices reach the Red BB, a new entry is even more reliable. Usually, price won't reach the Red BB, but when it does, you have a very nice entry point!
Waiting for both indicators to cross is a serious option, it will make entries more secure. However, you could miss a few pips by waiting for the indicators to cross. The question is, how much risk are you willing to take in a trade.. When you're not fully confident of a new possible entry, just wait for the indicators to cross.
very good system..
Case and point. Look at the down move that happened. not even 2 pips positive before it kept going down.
ok. i have some thoughts on this.
the setup is much better than the previous. you just can't trade bollinger bands alone. You will get burned most of the time. No matter how many deviations you have.
On the rules, you have to have a hard stop. That is just good money management sense. Second I would wait until both indicators crosses back (above/below) (overbought/oversold) levels. So both indicators have to be overbought and come back down for there to be a valid signal. I have seen cases where the market keeps moving. So don't just assume once it reaches oversold to immediately sell.
5 minute is too long. You will be in front of the computer all day and night for a couple of trades.
1 minute is good for a quick 5 pip scalp.
Testing 30-sec timeframe right now. It works out pretty good for 3 pips. and you don't have be there long.
Make sure you have low spreads. I will try this on the gbp and eur/jpy and see what happens.
thanks
Hi User,
Noticed you mentioned only about Blue and Yellow BB, what about the Red BB (dev.4)? What are they for? Thanks!
NewBoy
Post new comment