John Bolinger's own System using Bolinger Bands, Candles and MACD

[tymen1]

This great little system, which I introduced in Newbie Island is given full treatment here.

Settting up

Choose your favourite candle layout. Choose any currency pair and pick your favourite timeframe.

Now add :

a) Bolinger bands - default setting.
b) A MACD with the following.........trigger 9 (or delete - not used)
short set at 21 periods
long set at 100 periods

Weird settings I know.

Entry

Enter with a tag of the upper bb when the MACD is BELOW zero (contra ian) and go short
Enter with a tag of the lower bb when the MACD is ABOVE zero and go long.

Exits

The system gave no exit method so I devised my own after examining the system.

The idea is that you at least catch the middle band (20 period average) and go to the opposite band if you can.

So wait till the trade reaches the middle band, then set a trailing stop. The number of pips trailing depends on your time frame.

If you do get to the opposite band - good for you - more pips!

Stop loss

Measure the distance from your outer band to the middle band in pips.
Halve this distance and thus set your stop loss.

John Bolinger says that this is a "reversal system" and that it delivers "good risk-reward ratios"


END

[dav]

hi tymen

looks interesting, don't quite get you on the MACD settings, pls elaborate

tks, dav

[tymen1]

To Dav ;

Well you know that the MACD has 3 settings. They are normally............trigger=9, short average=12, long average=26 (9,12,26)

In this system they are ............trigger=9, short average=21, long average=100 (9,21,100).

They are unusual settings.

Does this clear up the problem?

[jlmac27]

Hello tymen,

I am using MT4 platform and the settings go as.....fast EMA...slow EMA...MACD SMA.

[tymen1]

Righto then - same thing with different names (probably better)

[Harry]

Originally Posted by tymen1

To Dav ;

Well you know that the MACD has 3 settings. They are normally............trigger=9, short average=12, long average=26 (9,12,26)

In this system they are ............trigger=9, short average=21, long average=100 (9,21,100).

They are unusual settings.

Does this clear up the problem?

They are unusual setting but they clear up the problem to great extent. Short average=12 could be better not sure of it.

[dr_zeus]

I've had a little success with bollinger bands doing something similar on USD/JPY and EUR/JPY, but I wasn't filtering it with MACD. I just traded the bounce between the bands and it works great for ranging markets.

What time frame are you using?

[tymen1]

I use time frames ranging from 20 minutes to 1 hour. Shorter than 20 minutes does not, as a rule, generate enough pips.

[dirtygringo]

Tymen,
Do you have any charts we can reference off of?

[dobro]

Originally Posted by tymen1

I use time frames ranging from 20 minutes to 1 hour. Shorter than 20 minutes does not, as a rule, generate enough pips.

I made seven small successful trades this am with no losses, entered the $/Sw 3 times short. I mostly used the 15M TF but the 30M twice. Nice strategy, thank you. d