bollinger band trading system

bunti_k23

Well-Known Member
#1
Hey guys iam trying to trade this system , rit now learning and understanding it , the system gives buy and sell signals but iam not convinced with it and i made my own rules to just confirm these buy and sell signals..below this i m attaching the image plz see it and share ur views
 

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bunti_k23

Well-Known Member
#2
My sole motto to trade this system is bcoz it follows pa and in any sense u will be with trend thats the main part i took this afl frm a site while i was searching for a system on bb and my frnd has made sum changes in this by introducing horizontal red and blue lines which r swing high and swing low sumtimes these lines also do not appear at swing high and swing low so i draw these lines manually by spotting the swings following i made sum rules for these i dont rely on buy sell signal of these syatem but i wud rather like to confirm them and go ahead ...


1-BEARISH CHART STRATEGY
NOTE
---PRICE WILL ALWAYS TRADE BELOW THE MID LEVEL OF BB
---PRICE WILL TAKE RESISTANCE AT MID LEVEL OF BB
---PRICE WILL ALWAYS BREAK PRIOR SWING LOWS.

ENTRY RULE-----

ENTER THE TRADE WHEN PRICE BREAKS PRIOR SWING LOW ,STOPLOSS SHOULD BE THE HIGH OF THE CANDLE AND TARGET WILL BE NEXT GREEN BAR OR THE LOWER BB.

EXIT RULE -----

EXIT WHEN THE STOPLOSS HITS ,OR EXIT WHEN TARGET HITS


2-BULLISH CHART STRATEGY

NOTE---

---PRICE WILL ALWAYS TRADE ABOVE MID LEVEL OF BB
---PRICE WILL ALWAYS TAKE SUPPORT AT MID LEVEL OF BB
---PRICE WILL ALWAYS BREAK PRIOR SWING HIGHS.

ENTRY RULE----

ENTER THE TRADE WHEN PRICE BREAKS PRIOR SWING HIGH , STOPLOSS SHOULD BE THE LOW OF THE CANDLE AND TARGET WILL BE THE NEXT RED BAR OR THE UPPER BB.

EXIT RULE -----

EXIT WHEN THE STOPLOSS HITS OR EXIT WHEN THE TARGET HITS

NOTE~~~~~~~~~ TO IDENTIFY SWING LOW OR SWING HIGH DRAW HORIZONTAL SUPPORT AND RESISTANCE LINE ON HIGH OR LOW OF SWINGS. THE MID-LEVEL OF BB IS SUPPORT AND RESISTANCE LEVEL IN BOTH BEARISH AND BULLISH STRATEGY,FOCUS SHOULD ALSO BE SHIFTED ON THE SLOPE OF UPPER BAND AND LOWER BAND AND THE MID-LEVEL AS THEY WILL SHOW THE CURRENT SHORT UPTREND AND DOWNTREND...






ADVANTAGE OF THIS SYSTEM

1--YOU WILL ALWAYS TRADE WITH THE TREND
2--YOU CAN CATCH THE BIGGER SWINGS OF THE SESSION
3--RISK IS VERY SMALL

DISADVANTAGE

1---NO. OF TRADES CAN BE INITIATED,SO NO. OF TRADE CAN BE IN LOSS BUT PER TRADE LOSS IS VERY SMALL
2--- STAY AWAY FROM RANGING MARKETS, AS THE BB WILL BE FLATEN OUT CAN LED TO MANY WRONG SIGNALS

@amitkawale23

thank you
 

KWR

Active Member
#3
My sole motto to trade this system is bcoz it follows pa and in any sense u will be with trend thats the main part i took this afl frm a site while i was searching for a system on bb and my frnd has made sum changes in this by introducing horizontal red and blue lines which r swing high and swing low sumtimes these lines also do not appear at swing high and swing low so i draw these lines manually by spotting the swings following i made sum rules for these i dont rely on buy sell signal of these syatem but i wud rather like to confirm them and go ahead ...


1-BEARISH CHART STRATEGY
NOTE
---PRICE WILL ALWAYS TRADE BELOW THE MID LEVEL OF BB
---PRICE WILL TAKE RESISTANCE AT MID LEVEL OF BB
---PRICE WILL ALWAYS BREAK PRIOR SWING LOWS.

ENTRY RULE-----

ENTER THE TRADE WHEN PRICE BREAKS PRIOR SWING LOW ,STOPLOSS SHOULD BE THE HIGH OF THE CANDLE AND TARGET WILL BE NEXT GREEN BAR OR THE LOWER BB.

EXIT RULE -----

EXIT WHEN THE STOPLOSS HITS ,OR EXIT WHEN TARGET HITS


2-BULLISH CHART STRATEGY

NOTE---

---PRICE WILL ALWAYS TRADE ABOVE MID LEVEL OF BB
---PRICE WILL ALWAYS TAKE SUPPORT AT MID LEVEL OF BB
---PRICE WILL ALWAYS BREAK PRIOR SWING HIGHS.

ENTRY RULE----

ENTER THE TRADE WHEN PRICE BREAKS PRIOR SWING HIGH , STOPLOSS SHOULD BE THE LOW OF THE CANDLE AND TARGET WILL BE THE NEXT RED BAR OR THE UPPER BB.

EXIT RULE -----

EXIT WHEN THE STOPLOSS HITS OR EXIT WHEN THE TARGET HITS

NOTE~~~~~~~~~ TO IDENTIFY SWING LOW OR SWING HIGH DRAW HORIZONTAL SUPPORT AND RESISTANCE LINE ON HIGH OR LOW OF SWINGS. THE MID-LEVEL OF BB IS SUPPORT AND RESISTANCE LEVEL IN BOTH BEARISH AND BULLISH STRATEGY,FOCUS SHOULD ALSO BE SHIFTED ON THE SLOPE OF UPPER BAND AND LOWER BAND AND THE MID-LEVEL AS THEY WILL SHOW THE CURRENT SHORT UPTREND AND DOWNTREND...






ADVANTAGE OF THIS SYSTEM

1--YOU WILL ALWAYS TRADE WITH THE TREND
2--YOU CAN CATCH THE BIGGER SWINGS OF THE SESSION
3--RISK IS VERY SMALL

DISADVANTAGE

1---NO. OF TRADES CAN BE INITIATED,SO NO. OF TRADE CAN BE IN LOSS BUT PER TRADE LOSS IS VERY SMALL
2--- STAY AWAY FROM RANGING MARKETS, AS THE BB WILL BE FLATEN OUT CAN LED TO MANY WRONG SIGNALS

@amitkawale23

thank you
nice work all the best bhai ji
 

KWR

Active Member
#5
Ys 50 cci is best with it
 
#7
Hey guys iam trying to trade this system , rit now learning and understanding it , the system gives buy and sell signals but iam not convinced with it and i made my own rules to just confirm these buy and sell signals..below this i m attaching the image plz see it and share ur views


Kindly Post the AFL code for above system to backtest it.

Thanx you
 

bunti_k23

Well-Known Member
#8
Kindly Post the AFL code for above system to backtest it.

Thanx you
sure maam anything for you:p
_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +" {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));
Plot( C, "Close", ParamColor("Color", colorYellow ), styleCandle, styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
if( ParamToggle("Tooltip shows", "All Values|Only Prices" ) )
{
ToolTip=StrFormat("Open: %g\nHigh: %g\nLow: %g\nClose: %g (%.1f%%)\nVolume: "+NumToStr( V, 1 ), O, H, L, C, SelectedValue( ROC( C, 1 )));
}
_SECTION_END();

_SECTION_BEGIN("EMA");
P = ParamField("Price field",-1);
Periods = Param("Periods", 20, 2, 200, 1 );
Plot( EMA( P, Periods ), _DEFAULT_NAME(), ParamColor( "Color", colorCycle ), ParamStyle("Style") );
_SECTION_END();

_SECTION_BEGIN("BB-EMA");
Tp=(H+L+C)/3;
Per = Param("EMA Periods", 20, 2, 200, 1);
stper=Param("StDev Period",20,10,30,1);
w=Param("Width",2,0.5,4,0.5);
BBup=EMA(tp,per)+w*StDev(C,stper);
BBdn=EMA(tp,per)-w*StDev(C,stper);
BB_Mid=EMA(((BBup+BBdn)/2),5);

Plot (bbup,"BB-UP",ParamColor( "Color", colorLightGrey ),styleLine);
Plot (bbdn,"BB-DN",ParamColor( "Color", colorLightGrey ),styleLine);
Plot (bb_mid,"BB_Mid",ParamColor( "Color", colorBlue ),styleLine);
PlotOHLC(BBup,BBup,BBdn,BBdn,"BB-EMA", ParamColor("color",colorDarkOliveGreen), styleCloud,0,0,0,-2);


_SECTION_END();


//TRENDING RIBBON
// Paste the code below to your price chart somewhere and green ribbon means both
// both MACD and ADX trending up so if the red ribbon shows up the MACD and the ADX
// are both trending down.
_SECTION_BEGIN("trending ribbon");
uptrend=PDI()>MDI() AND MACD()>Signal();
downtrend=MDI()>PDI() AND Signal()>MACD();
Plot( 2, /* defines the height of the ribbon in percent of pane width */"ribbon",
IIf( uptrend, colorGreen, IIf( downtrend, colorRed, 0 )), /* choose color */
styleOwnScale|styleArea|styleNoLabel, -0.5, 100 );
_SECTION_END();
_SECTION_BEGIN("Price");
//SetChartOptions(0,chartShowArrows|chartShowDates);
//_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C,
//SelectedValue( ROC( C, 1 ) ) ));
//Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );
_SECTION_END();
//=====================================================================================

top1=BBandTop(p,20,1);
bot1=BBandBot(p,20,1);
top2=BBandTop(p,20,2);
bot2=BBandBot(p,20,2);
stocup=StochK()>StochD();
MACDup=MACD()>Signal();
Lim=ADX()<30 AND StochK()<80;

Buy=Cross(C,top1) AND C>=O OR
Cross(MACD(),Signal()) AND stocup AND C>top1 AND C>=O AND lim OR
Cross(StochK(),StochD()) AND C>top1 AND StochK()<50 AND C>=O AND Lim;
Sell=Cross(top1,C);

PlotShapes(IIf(Buy,shapeUpArrow,shapeNone),colorBlue,0,Low,Offset=-15);
PlotShapes(IIf(Sell,shapeDownArrow,shapeNone),colorRed,0,High,Offset=-15);

x=Cum(1);

Pk1=Sell;
Tk1=Buy;

px1=LastValue(ValueWhen(pk1,x,1));
px2=LastValue(ValueWhen(Pk1,x,2));
tx1=LastValue(ValueWhen(Tk1,x,1));
tx2=LastValue(ValueWhen(Tk1,x,2));

XT1 =LastValue(ValueWhen(pk1,Ref(H,-1),1));
XT2 =LastValue(ValueWhen(pk1,Ref(H,-1),2));

YT1 =LastValue(ValueWhen(Tk1,Ref(L,-1),1));
YT2 =LastValue(ValueWhen(Tk1,Ref(L,-1),2));

pk1=IIf(x>=px1 ,XT1,Null);
pk2=IIf(x>=px2 ,XT2,Null);
tl1=IIf(x>=tx1 ,YT1,Null);
tl2=IIf(x>=tx2 ,YT2,Null);

Plot(pk1,"",6,8);
Plot(pk2,"",6,8);

Plot(tl1,"",4,8);
Plot(tl2,"",4,8);


:p
 

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