I learn a lot from this trader about how to trade with BB's:
http://www.efuturevision.com/ejbands.php3
http://www.efuturevision.com/ejbands.php3
Bollinger Bands
- Thread starter Spxdes
- Start date
OPTIONCOACH,
Your explanations are good. I looked at the ES chart, too. GOOG - also very nice. Such mouth-watering trades are fun to look at.
There are many ways to identify low volatility. I've been using a "narrow BBs" formula for a while in my EOD searches. I'm sure there's a similar formula for every program. What your approach offers, however, is a handy method of trading such set-ups. Take GOOG. The low volatility would have showed up on many screens, but trading the pop while still keeping one's ass covered is another story. Ever trade stocks? Have a look at AM.
I have to sign off for a few days -- but not without thanking you for the discussion.
Here's to profit!
Your explanations are good. I looked at the ES chart, too. GOOG - also very nice. Such mouth-watering trades are fun to look at.
There are many ways to identify low volatility. I've been using a "narrow BBs" formula for a while in my EOD searches. I'm sure there's a similar formula for every program. What your approach offers, however, is a handy method of trading such set-ups. Take GOOG. The low volatility would have showed up on many screens, but trading the pop while still keeping one's ass covered is another story. Ever trade stocks? Have a look at AM.
I have to sign off for a few days -- but not without thanking you for the discussion.
Here's to profit!
I use them a bit like stochastics. I do not like to go long if we are tagging the top bands or short when we are hugging the bottom bands. Also, if candles are tagging the bollinger band for an extended period of time (touching) then they come off and start closing under neath them I will be more likely to take a counter trend trade.
CajunSniper / Puretick.com Administrator-Trader
CajunSniper / Puretick.com Administrator-Trader
I have always thought Bollinger Bands are a little tricky because the current band values are calculated based on the current price. If the last price on the bar is up near the high of the bar, then the upper band can be a distance over the bar. But, if the last price retraces within the bar, then the live Bollinger Band value will be pulled down into the bar, looking like a tag occurred, but it did not happen when the price was up near the high.
I like to modify the Bollinger Bands to be plotted one bar forward. Now, the Bollinger Band values, upper, lower and middle, are fixed, instead of moving reference point. I can observe how the live price is trading relative to the fixed Bollinger Band reading.
www.hartleandflow.com
I like to modify the Bollinger Bands to be plotted one bar forward. Now, the Bollinger Band values, upper, lower and middle, are fixed, instead of moving reference point. I can observe how the live price is trading relative to the fixed Bollinger Band reading.
www.hartleandflow.com
Hi everyone.. great thread.. I owe much of my trading enlightenment to Bollinger Bands... they make me want to break out into song...
However I agree that that they are tricky when it comes to creating entry and exit points that are specific robust and unequivocal rather than subjective. They are still good for Discretionary traders but as a newbie, so Im looking for more visual "apparatus" to strengthen this most deliciously exquisite indicator of indicators for predicting moves after low volatility pinch... (sublime breakout weapon of choice.. ) please keep em coming..
Optioncoach I love some of your suggestions for improving the signals..thank you so much for being so free and generous with that
any more combos anyone?
regards
Paul
However I agree that that they are tricky when it comes to creating entry and exit points that are specific robust and unequivocal rather than subjective. They are still good for Discretionary traders but as a newbie, so Im looking for more visual "apparatus" to strengthen this most deliciously exquisite indicator of indicators for predicting moves after low volatility pinch... (sublime breakout weapon of choice.. ) please keep em coming..
Optioncoach I love some of your suggestions for improving the signals..thank you so much for being so free and generous with that
any more combos anyone?
regards
Paul
Results of 20 day Bollinger Band performance from October '05 to present , as simply reported on real-world trading charts (freecharts.com is free service from Barcharts.com).
S&P futures:
31 Trades, 3 Days/Trade, total P/L -30,400.00
http://www.freecharts.com/Commodities.aspx?page=perform&sym=SPU7&sig=07
Now, what makes you break into song?
Employing Bollinger Bands as a mechanical system, to trade a very large portfolio of futures markets, yields quite pleasing results. Attached is a system test showing a ten million dollar account (i.e a very small Fund) trading 86 markets using Bollinger Bands. System rules are:
1. If flat, and today's close is above the upper band, go long at tomorrow's open
2. If long, and today's close is below the middle band, exit long at tomorrow's open
3. If flat, and today's close is below the lower band, go short at tomorrow's open
4. If short, and today's close is above the middle band, exit short at tomorrow's open
Parameter values are included in the output (at the very bottom). You may also enjoy viewing the Profit Factor, and the ratio (Profit of Average Winning Trade) / (Loss of Average Losing Trade)
1. If flat, and today's close is above the upper band, go long at tomorrow's open
2. If long, and today's close is below the middle band, exit long at tomorrow's open
3. If flat, and today's close is below the lower band, go short at tomorrow's open
4. If short, and today's close is above the middle band, exit short at tomorrow's open
Parameter values are included in the output (at the very bottom). You may also enjoy viewing the Profit Factor, and the ratio (Profit of Average Winning Trade) / (Loss of Average Losing Trade)
Sure but can most people handle the 13 month/ 32% drawdown before they throw in the towel and search for another system?:eek:
Quote from traderdave72:
Sure but can most people handle the 13 month/ 32% drawdown before they throw in the towel and search for another system?:eek:
True.
Not to mention this flies in the face of serious testing of BBs by others. A pretty set of graphs without individual trades has no value.
Science is about "testable, repeatable by others."
If cannot verify any of the individual trades, then this backtest remains without merit.