135 Pips/day 4h testing

[burhan]

I have just tested a system and make 135 pips/day using different currencies.

Please test it and give me response.

Time period: 4h
Indicator: Bolinger Band (default settings)
Indicator: MACD (12,26,9 ) (default settings)

See attached image for more clarification.


Strategy:

1- highest and lowest bands of Bolinger together
2- MACD crossing.

4h.jpg

[perfectsun]

I don't get it.

Highest and lowest bands together?
Watching but don't see it, please show it to me again.

Regards

[pippa pippa]

Tried it today on a whim. Then forgot all about it (demo), came back and was in profit.

Will test some more.

[alldirex]

When do you close your open positions??? This seems to be good for entering trades, but what about exiting?

[pkffw]

What's with that second set of bands? Looks like bollinger bands and something else as well(those square steppy looking bands).

Looks interesting though.

Cheers,
PKFFW

[maurizio77]

Yea i know what you mean pkffw, i have never seen that configuration anywhere before..perhaps it is particular to that charting package.................I have however seen a system like this before.

It is similar to a system that was put on here a few months ago, it could have been one of James's actually.

Although there are differences, firstly the other system used MACD crosses and PARABOLIC SAR.....i forget the settings :S....this one uses the BOLLINGER BANDS at their narrowest point..i suppose it is the same sort of thing, a confirmation after the MACD cross.

The theory behind it seems pretty sound, we know that when MACD crosses is it indicative of a potentail big move or reversal......and we know that when the BOLLINGER BANDS contract to their lowest point, it is indicative of price consolidation..which in turn usually resluts in a breakout one way or the other.

I am interested in this..........will demo it for a couple of weeks and let you all know how i get on

May the pips be with you

[burhan]

Originally Posted by perfectsun

I don't get it.

Highest and lowest bands together?
Watching but don't see it, please show it to me again.

Regards

Highest and lowest band of "Bolinger" should come closer. (Means together)
In other words, distance of highest and lowest band of "Bolinger" should be narrow.

You can see Attached image in my first post. I have pointed out Highest and Lowest band of "Bolinger" at left side of image.

[trader1]

burhan thanks for telling us about this. I like strategies that are simple to use. Maybe someone can do some backtesting to give us an approximate idea of how performs over the long term.

When price makes nice swings and trends, you could probably follow MACD by itself and be profitable. But what happens when price starts to range how often will the BB give you false breakouts signals. In other words right after you enter an apparent BB expansion, how often will price reverse and hit your stop loss.

[jimocean]

hi burhan...

can you share with us what charting u use ? how do i get the same chart like yours ? i am still consider a newbie...

please help..thanks in advance.

[RoddyPipper]

Originally Posted by jimocean

hi burhan...

can you share with us what charting u use ? how do i get the same chart like yours ? i am still consider a newbie...

please help..thanks in advance.

He's using VT Trader. Visual Trading Systems, LLC

Originally Posted by pkffw

What's with that second set of bands? Looks like bollinger bands and something else as well(those square steppy looking bands).

VT Trader by default plots those high/low bands on all charts but they can be disabled if they become confusing when not part of your trading system.