I use Bollingers quite a bit. But they are indeed modified from the default settings. I prefer longer times such as 40 bars and then look at standard deviation settings of 0.5, 1, 3.
Once in a trade I am using them as an aide for easy viewing of the probability cloud that I have calculated. Think about electron orbitals around an atom. I look at future price as being contained in a cloud of probability.
For entry I prefer the 3rd deviation; if in am looking for a breakout.
Also use them for trading ranges to get probabilities between the lower deviations, essentially a scalping technique.
All this get applied (with a lot of other mumbo-jumbo that I consider) to come up with a probability for the trade.
Also use Donchian Channels. Setting them at 80 or twice the Bollinger gives a fast look to see if I am going too far astray. A reference point if you will, like a pilot wanting to see the horizon.
That's it for the indicators. Toss in a bit of data collection and maths; and look at the candles/price action and S/R levels. That's my trading scheme.
This post by @isotope
https://www.elitetrader.com/et/thre...-hybrid-experiment.300013/page-9#post-4286317
touched on the concept.
Shows not really any new ideas, I had been plugging away with this for a few years. I did some data collection (experiments) to test the theory (that whole scientific method thing). I found different percentages than what he mentioned but there could be all sorts of reasons for that.
Works for me is all I can offer. Took some work to get the data, and I had to be very cautious of bias to be sure I was not "curve fitting" the data. Trading alone does not give the opportunity for double blind testing.
