The Bollinger Bandit Strikes Again

Originally posted by profitseer
ok, then let me ask you this, do you have a minimum breakout? I've tried it using 21 and 11 and 55 periods. Maybe I just hit bad days. I was using a 1 tick breakout, and it is uncanny how many times the old sr was taken out by 1 tick and then right back to the midrange.

I know this is where the money is, but everytime I try it the market usually gets some good laughs.
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I'm not really sure what you mean by "Do I have a minimum
breakout? Do you know how to make snap shots of your
computer screen? Download this program (it has a 30 day
free trail) and take a picture of your chart and post it,so
I can see what you mean.

www.techsmith.com/products/snagit/download.asp
 
I use BBands on my core stocks, along with MACD,RSI and ADX- give me great signals consistently. Wait for moments like EBAY around 3 cst when every signal said act , even confirmed by hammer candle. Nice 1 point move. Have found it to be money maker almost 100% of the time. Try it,you'll like it.
 
TG what exactly do you look for when using BB's, ADX, RSI. MACD... are u looking to fade extreme moves? trade with the trend? Whats your strategy?


--MIKE
 
I dont know how to send a chart, but I,ll tell you what I have on my setup and you can recreate. I use esig 1 day advanced chart, 1 minute candles, studies include BBands, MACD,RSI,ADX. Around 2CST, EBAY had moved below lower band, formed a hammer and RSI was extended and ADX was as well with reading of 50. Compq had stabilized, EBAY had moved its ATR. Bought when it moved above band, figured risk reward 3:1. Nothing said sell me till RSI hit 70 and candle moved outside upper band.
Apologize for not being able to send chart, Ill figure it out soon. Kind of dangerous around computers.
Setup produces 3 to 5 plays a day on my core stocks-Ive been very happy with results just trading first and last part of day.
 
Breakout, I appreciate your charts posting. But you've been posting charts for days that have more or less good direction. Could you please post charts for 08/15 which was a pretty ugly range day? How did ya do on that day?
 
Originally posted by sunnyskies
Breakout, I appreciate your charts posting. But you've been posting charts for days that have more or less good direction. Could you please post charts for 08/15 which was a pretty ugly range day? How did ya do on that day?
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Hi sunnyskies...that's a lot of work my friend...lol

My charts are really long since I use 100 tick bars and I
had about 15 trades that day.

Actually, the day started pretty good. I was up about
$700 before noon. Then after that big quick sell-off around
noon, I got chopped to pieces the rest of the day and
was down about $500 when I surrendered.

I quess that's what I get for being greedy. :(

But, you're right, it was an ugly day after that big sell-off.

I try not to let a losing day get me down, though. I'm
more concerned whether or not I'm profitable at the end
of each month.

You'll have days like 8-15 all the time...sometimes 2 or 3 in a
row. It's those days like July that I posted earlier that get
you back in the money.


To me, that's the true trading discipline. To be able to
go through 1,2 or 3 losing days in a row, but not get
discouraged, and stick to your plan.

Sorry, if I seemed bias on the charts I posted. But, I can
assure you that traders have been trading support and
resistance levels for a long time. If you're just of average
intelligence like me, and you're looking for a simple
method to trade, it's hard to beat.

It's interesting to watch on the charts. When price starts
breaking support or resistance, you can see the the
price action and volume get suddenly active.


I usually start with a 20 period "price channel" in the morning,
and slowly widen it to about 50 periods by 10:30 or so.

If you can't draw 100 tick bars, use 3 minute bars. Lay a 20 or
30 period "price channel" and a volume indicator. Preferably,
one that distinguishes "up" and "down" volume like my
chart does. Wait for a bar to "close" above the resistance
line or below the support line, then get in and put a tight
stop in.

Sure, you'll get whipped a few times...but what method doesn't? If you're going to be a trader, you're going to
"HAVE TO LEARN TO LOSE"...it's part of the business.

I'll try to post a few real-time charts monday or tuesday, and
get some losing trades in there,too



:D
 
Been in the lab all weekend thanks to you breakout. If I see one more magenta line! I figured out they don't call them donchian channels anymore. N days or something like that.

So far, I have n period 30 and dmi 13. Almost all breakouts are accompanied by crossovers. But the ones that aren't don't amount to much, and the ones where the breakout and the crossover are almost simultaneous are the best in terms of reliability. And that's as far as I've gotten so far.

No need to post any losing charts on my account, I already know what they look like.
 
oh yeah, I forgot to tell you. Fairly awesome system when you get a good breakout is use the 50ema as a stop. Got a friend who when he was young, went short NQ on a breakout and the 50ema didn't stop him out till he was an old man.

Fortunately I am young and in the prime of my life, cause it's going to take me a thousand trades to make what he made on that one.
 
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