Bollinger Bands Strategy Lingsbord

22 Eyl 2018

Indicator made by the idea provided by Lingsbord from the forum Binary Options Edge.

Features Implemented from Original Idea
Trade Sessions 0410-0815 and 0930-1200 (for some reason pinescript works off UTC-4?, London is UTC+1)
Indicator only signals when bar is inside trade sessions.
Background is shaded when Trade session is active.
Indicator Draws Arrows when a bar closes outside of 2.5 bollinger band.
Trade is executed at the opening of the next bar and recorded in the strategy tester.

Modifications to Original Idea
This Strategy has been modified to include his "Anti-Breakout Protection) where it will only place 2 consecutive losing trades in the event of consecutive bar closing outside of the bollingerbands.
binaryoptionsedge.com/topic/1110-60-sec-strategy-making-real-money/page-17
In the Event of the first trade ending ITM and the next bar closing back inside the Bollinger bands then the next bar going back outside, the script will trigger another trade signal.
Allows for consecutive wins in an uptrend but still limiting to 2 losses as per modification above

Excel Spread sheet tracking profits
$1887.04 from Monday 17-09-2018 to Friday 21-09-2018
i.imgur.com/Q39XgVu.png


binaryoptionsedge.com/topic/1110-60-sec-strategy-making-real-money/

Step 1.
I have an FXCM demo account running Metatrader 4 and a 1 min EURUSD chart open.
This chart has 1 indicator on it, Bollinger Bands with settings 20 and 2.5.
I found that deviation of 2 creates too many false signals and deviation of 3 means you’ll be lucky to see more than 3 trades per day.
I settled on 1 minute for the number of trades it offers during an average day and because the 5 minute offers no better ITM rate.
I also have the Market Watch window open on the metatrader but I reduce the size of the box down so I can only see the EURUSD rate and the clock.
It’s this clock that I use as my “countdown trigger”.

Step 2.
-Redacted- (Affilliate marketing bullshit) -Redacted-

Step 3.
OK as you will have seen elsewhere on the BOE Boards,
the trading strategy is simply to take a trade in the opposite direction when a candle closes outside the Bollinger Bands,
so if it closes out of the top band I enter a Put, and if it closes below the bottom band I enter a Call.
As the Market Watch clock gets into the 50s on the seconds and if a trade appears to be lining up,
I’ll hover over the Put/Call button and closely watch the clock and the chart so I can nail the trade the moment the candle closes.
Expiry is 1 minute.

Trading times
I avoid the period prior to London Open as there’s often a series of trades in the same (wrong) direction as the market gears itself up for the day,
so I’ll normally look for the first trade from 09:10 UK time and I’ll then trade until about 13:15,
picking up again around 14:30 after NYC Open to avoid another rush around that time and to give me a chance to enjoy some lunch without worrying about trading!
For those of you trading Asian markets I’d avoid the “dead zone” and trade from about 02:00 onwards (again, UK time) when there might be enough movement to be able to make sense of this strategy.

Trade sizes
My first trade is $100. If this trade ends ITM I make $82 and look for the next one, again at the starting level of $100
If the first trade ends OTM then my second trade on the next signal is $320. If this trade ends ITM I make $262 which recovers the original $100,
also creates the original $82 of profit that the first trade would have made, and then makes a further $80.
Again your next trade is at the starting level of $100
If the second trade ends OTM then the third trade is $512.
If this trade ends ITM then it recovers the original $100 and the $320 but there’s no profit,
we’ve just recovered the losses and we move on with the next trade at $100
If the third trade ends OTM we REPEAT the $512 trade. If this trade ends ITM we generate $420 towards recovering part of the losses made in the other trades.
These 1-4 trade sequences we call “events”.
Most events will be only 1 or 2 trades,
i.e. you will be making consistent strong returns most of the time.
When an event consists of 3 consecutive trades you will break even on that event and look for the next trade
When an event consists of 4 trades where the 4th one ends ITM you will subsidise your loss on the previous 3.
Some people can’t face the concept of a trade that doesn’t generate profit,
but believe me I’ve run so many examples that this structure works best in terms of risk/reward over time.
When an event consists of 4 trades and the 4th one ends OTM you will take a “hit”.
Based on the above numbers the hit will cost you $1,444 at this level.
When this happens you set the platform back to $100 and start again.