The
trend trading strategy of Bollinger Bands Montecarlo for assets with
high volatility It is based on the idea of using Bollinger
bands in combination with moving averages, which allows us to
determine short and medium term price reversals.
Input
parameters
Currency
pairs: highly volatile assets - GBP / JPY, GBP / NZD, CAD / JPY, AUD
/ JPY, EUR / NZD, stock indices, oil, gold, etc.
Time
interval: M1 and earlier
Offer
time: any
Risk
management: after calculating the stop loss, choose 2-5% max of the
deposit per transaction
Indicators
Bollinger
Bands (20, 1)
Moving
average (50, median)
Moving
average (13, median)
Unzip
the archive
Copy
the model to the model folder
Copy
the indicators into the MQL4 folder -> indicators
Reboot
the terminal
Open
the chart of the desired currency pair
Install
the model called BB Montecarlo
The chart should look like this:
Determine
the direction of the trend
The
author of the strategy recommends opening positions exclusively in
the direction of the trend, which is determined as follows:
bullish
trend - MA (50) crossed the midline of the Bollinger bands from
bottom to top, MA (13) crossed MA (50) from top to bottom;
downward
trend - MA (50) crossed the midline of the Bollinger Bands from top
to bottom, MA (13) crossed MA (50) from bottom to top.
Signals
indicating the opening of a long position
there
are signs of an upward trend;
a
buy position opens when the candle closes over the top edge of the
Bollinger Bands.
Signals
indicating the opening of a short position
there
are signs of a downward trend;
a
sell position opens when the candle closes below the bottom edge of
the Bollinger bands.
Set
a stop loss and take the profit order
Stop
loss is set above / below the opposite edge of the Bollinger bands;
Profit
is set by asset and time frame or at one of the pivot levels.
Advice
of the author of the strategy
if
the Bollinger bands or the moving averages are directed horizontally,
this indicates a lateral tendency: most of the signals in the
apartment will be false.
note
that the number of trading signals will be inversely proportional to
the increase in time: the greater the time interval, the less trading
signals the strategy will generate.
more
advanced operators can experience the replacement of moving averages
with their more advanced changes, where the delay is minimized, which
will increase the accuracy of the inputs.
Before
using Bollinger Bands' trend trading strategy on a real deposit, be
sure to test it on a demo account.
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