BollingerWorm !!!

Do you feel BolligerWorm better than BollingerBand?

  • YES

    Votes: 73 70.9%
  • NO

    Votes: 30 29.1%

  • Total voters
    103

columbus

Well-Known Member
#1
BOLLINGER WORM

Since the appearence of the Chart looks like a WORM sandwiched
between Bollinger Bands ,hence the name Bollinger Worm.Basically
this is a INTRADAY technique ,as EMAs involved are 2H & 2L.

Most of the ideas are derived from Bollinger Bands.





Construction

1.Use standard Bollinger Bands ,that is,bb(s,20,2).
For thicker bands you can use bb(s,20,2.01), bb(s,20,2.02).....

2.Use ema2H and ema2L to outline the body of the worm.

3.If the body comes out of bands ,then make an ENTRY.
In case of doubt ,modify TF by 0.25min.That means if you are
presently following 3min TF ,change it to 3.25 min TF.

4.The EXIT is, if body comes out the band,of the other colour.

5.Since ONLY one colour or EMPTY candles are used ,no emotional
trades.

Hats off John Bollinger !!!!
 
Last edited:

columbus

Well-Known Member
#2
Bollinger Worm can be used for INTRADAY stocks also.
 

columbus

Well-Known Member
#3
Few guidelines

Do not enter trades before 10AM for 2 reasons.
a) Indicators are not formed completely to take a proper decision.
b)Yes,some people disagree with my statement ,telling that the
first hour trades are more fetching.But the chances of going against the
trend is also HIGH.It will affect the morale.

Before Europe opens ,be happy with small profits.

Try to earn in both directions.
 

columbus

Well-Known Member
#4
Self- explanatory.




The "V" shapes at lower band and "Inverted V shapes" at Top bands are quite significant.
 
Last edited:
#5
thanks for posting this. could you provide some kind of a back-testing report for this method?
i use tradestation. would you have any ideas on how to code this?
 

columbus

Well-Known Member
#6
thanks for posting this. could you provide some kind of a back-testing report for this method?
i use tradestation. would you have any ideas on how to code this?
Hi tradesmyth,

The construction is quite simple.We need to have 1.ema2low 2.ema2high and
3.Blank candles. All systems have Bollinger Bands.
I never worked on tradestation.My knowledge about software coding is poor.
 

murthymsr

Well-Known Member
#7
Few guidelines

Do not enter trades before 10AM for 2 reasons.
a) Indicators are not formed completely to take a proper decision.
.....................
What is your opinion on taking yesterday's bars also to complete the full 2 hours of 5 minute bars ( gap included) and stsrt trading earlier to 10 AM?

Thanks in advance.
murthymsr
 

columbus

Well-Known Member
#8
What is your opinion on taking yesterday's bars also to complete the full 2 hours of 5 minute bars ( gap included) and stsrt trading earlier to 10 AM?

Thanks in advance.
murthymsr
Hi murthy,

Yesterday was exception.Moreover there are 2 ways to overcome this.

1.Basically Worm has variable time frames.In the initial stages we use 1MIN
timeframe, so the first band will appear at 9.15+20*1=9.35Am.So we get
ample time to react.

2.Use others averages like EMAs.

I mentioned that sometimes FIRST hour trades are fetching , but not
always.
 

murthymsr

Well-Known Member
#10
Hi murthy,

Yesterday was exception.
..................
By yesterday, what I meant was the previous day, to the current day, to generalize the worm concept across trading days.

Thanks.
murthymsr
 

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?