Went long at the CBL drawn from the high of the Extreme Candle. Was a bit hesitant about taking the trade due to the Outer BBs expanding a bit - particularly the lower one but thought I’d play for the Mid BB as was looking like this would be my last trade for the week given the approaching weekend and I felt like the push towards 85.00 and lower had run out of steam for now. Entered with 2 positions of 2 mini lots each and the stop was drawn just below the low of the Extreme Candle.
Took a few hours and TP1 was hit and first position closed out for +17 pips. I was debating what to do about the 2nd position with the end of my trading day approaching when price suddenly took off an leaped up to the Outer BB. To be honest I’m not sure why it jumped up like that all of a sudden but I won’t look a gift horse in the mouth. 2nd position closed for +49 pips.
Total P&L: +66 pips
Total Account Risk: 0.82%
R/R: 1.43
Account Balance: +1.18%
Overall Account Balance: +12.93%
Trade 36 - 13/08/2010
Pair: EUR/GBP
Timeframe: 1 Hour
Nothing to report here - a long trade I jumped in and out of almost as quickly again. Was trying to look for a trade where I think none was. Repainting of the BB lines made it look a bad call and I closed at breakeven. Price has since dropped pretty rapidly in this pair so dodged a bullet there.
Total P&L: +0 pips
Total Account Risk: 0.60%
R/R: 0.00
Account Balance: +0.00%
Overall Account Balance: +12.93%
Pretty happy with the last week all in all. Made some mistakes and missed some good trades but ended up +4.22% for the week so I’m not going to grumble too much. So far the system seems to be working out for me and is working in line with expectations i.e. the win rate is good but the R/R is fairly low. I’m encouraged to keep going with it in demo for now while I save up some funds.
Went long with the CBL drawn from the high of the Extreme Candle. Entered two positions of 2 mini lots and 1 mini lot. Stop was drawn a little below the low of the Extreme Candle.
TP1 was hit within the first hour and the first two positions closed. Price rose up a bit more but then started to fall. I had a long GBP/USD trade open too at the same time and I felt like I had to make a choice between the two trades. Decided to go with the long GBP trade and close the CAD which is now starting to look like the wrong choice. Misread the markets it seems.
Total P&L: +21 pips
Total Account Risk: 0.59%
R/R: 0.52
Account Balance: +0.30%
Overall Account Balance: +11.95%
Went long at the CBL drawn about halfway through the Extreme Candle. Stop placed a little below the low. Entered two positions of 2 mini lots and 1 mini lot.
TP1 was hit quickly and closed out the first position for +8 pips. Seemed to be going well at this point but markets chopped and turned around and I ended up closing the 2nd position just before breakeven as wasn’t sure which way things were going and Dow futures were turning negative. Price has since popped up again but that’s the way it goes sometimes I suppose.
Total P&L: +9 pips
Total Account Risk: 0.80%
R/R: 0.19
Account Balance: +0.15%
Overall Account Balance: +12.12%
When you are entering your trade from the CBL are you entering immediately the PA hits that point, or are you waiting for the candle to close then entering on the next candle open?
I draw the CBL from the extreme candle and then I wait for it to close and enter during a candle after that - whichever one passes though the CBL. Though I do monitor the PA, the overall trend and the behaviour of the Outer BBs pretty closely at this point to make my final decision about whether to enter or not. If I’ve a good reason to believe PA is weak in the direction I want enter in or if the BBs are showing an expansion I’ll typically not enter the trade and look for a different opportunity. Repainting of the Outer BBs can make things a little tricky sometimes so it can be a bit of a judgement call.
Not a Bollinger DNA trade. Entered a speculative long trade when price had dropped to 85.30. Decided to close it after a while of going nowhere and use the risk elsewhere. Turned out to not be a great decision as markets suddenly started to rise up not too long after. That’s the way it goes.
Total P&L: +2 pips
Total Account Risk: 1.68%
R/R: 0.02
Account Balance: +0.04%
Overall Account Balance: +12.16%
Went long after the Extreme Candle with a position of 2 mini lots and 1 mini lot. Stop was drawn a little below the Extreme Candle. Price went my way for a little before dropping to just a shade above my stop level. I was debating whether to close out or not but stayed in and fortunately price started to move up again.
Closed out TP1 the next day for +42 pips and let the last position go. It rose up a bit but never reached the Outer BB in the end. When it dropped back down to the Mid BB I decided to close out the 2nd position.
Total P&L: +80 pips
Total Account Risk: 1.18%
R/R: 0.92
Account Balance: +1.09%
Overall Account Balance: +13.38%
Went short at the candle after the Extreme Candle. Entered two positions of 2 mini lots and 1 mini lot. Stop was drawn a little above the high of the Extreme Candle.
Looked like a bad trade initially as PA rose up fairly quickly and came close to stopping me out but it held within the Outer BB before falling back down. Let it run overnight and closed out TP1 for +23 pips when I got up this morning. Moved my stop to breakeven at this point and PA reversed and stopped me out a few minutes ago.
Total P&L: +23 pips
Total Account Risk: 1.83%
R/R: 0.22
Account Balance: +0.41%
Total Account Balance: +13.84%
Went short a little before the release of the BOE minutes with the entry point drawn from the Extreme Candle cut in half (though it didn’t quite pierce the Outer BB I thought it’d be good enough). Entered two positions of 2 mini lots and 1 mini lot. Stop was drawn a little above the high of the Extreme Candle which was pretty tight so risk was not much.
GBP strengthened across the board immediately after the release and I closed out the 1st position for +23 pips once it hit the opposite Outer BB. I didn’t close at the mid BB as it was dropping so fast. Closed out the remaining position three hours later as have some other stuff to take care of and would prefer to take profits.
Total P&L: +64 pips
Total Account Risk: 0.32%
R/R: 2.42
Account Balance: +0.76%
Overall Account Balance: +14.71%
Went long with this pair with the CBL drawn from the high of the Extreme Candle (which also hadn’t quiet pierce the Outer BB). Stop was placed a bit below the low. Entered two positions - 2 mini lots and 1 mini lot.
PA rose up a little after entering the long but then dropped down and the Outer BBs took on a bad looking expansion for a long trade. After a couple of hours had passed this expansion started to look even worse and it looked like USD/JPY was making a run towards 85.00 so I closed out the trade manually for a bit of a loss. Price has since come back but I’m ok with taking a small loss as had the look at the time of being a fully stopped out trade.
Total P&L: -22 pips
Total Account Risk: 0.65%
R/R: -0.44
Account Balance: -0.29%
Overall Account Balance: +14.38%
Went short at the CBL during candle after the Extreme Candle. Entered two positions - 2 mini lots and 1 mini lot. Stop was placed a little above the high of the Extreme Candle.
TP1 was hit about five minutes after entering the trade for +15 pips. Price continued to drop quickly and even though it was getting near the lower Outer BB it looked like there was some expansion going on so decided to sit and wait. Moved stop to breakeven and left the trade. I should’ve checked the calendar though as there was some important GBP news out a few minutes after and some good UK news caused the pair to reverse sharply and stop my 2nd position out at breakeven. My fault for not being more careful with checking the news.
Total P&L: +15 pips
Total Account Risk: 0.52%
R/R: 0.50
Account Balance: +0.26%
Overall Account Balance: +14.70%
Went short once PA was around the CBL the candle after the Extreme Candle. Looked like we were going into a squeeze and the Mid BB was angling down so looked like a good opportunity technically. Was a bit hesitant due to some news on the wires about possible JPY weakness due to some upcoming meetings but thought it’d be worth a go anyway as there didn’t seem to be anything concrete in them yet. Entered 2 positions of 2 mini lots each. Stop was drawn a little above the high of the Extreme Candle.
TP1 was hit reasonably soon after entering the trade for +22 pips. Moved my stop up to breakeven at this point in case we did get a turnaround. Price instead dropped even further following US jobless claims and I closed out the 2nd position before it had hit the Outer BB as the 85.15 area has been pretty strong resistance the past few days and I don’t really see 85.00 being taken out today. Could well be wrong but I’ll take my profit and see about maybe placing a long later today.
Total P&L: +79 pips
Total Account Risk: 0.73%
R/R: 1.88
Account Balance: +1.38%
Total Account Balance: +16.29%
Went long at the CBL drawn from the midway of the Extreme Candle. Entered two positions - 2 mini lots and 1 mini lot. Stop was placed a bit below the low of the Extreme Candle. Looked like we were entering a squeeze and I was hoping at the time to get to mid BB - anything else would be a bonus but I wasn’t expecting it really.
In the end TP1 was hit fairly early on for +39 pips after EUR was carried along on the upward rise for GBP following some good UK data. Moved my stop up to breakeven in case we got a reversal and let the rest play out. Pair continued to rise after the US jobless claims and I closed out the 2nd position manually near the top of the Outer BB. Have to go out to buy a suit for a wedding and figured I’d take my profit as don’t want to lose it all back to some sharp reversal (if one comes).
Total P&L: +132 pips
Total Account Risk: +0.93%
R/R: 1.58
Account Balance: +1.47%
Overall Account Balance: +18.00%
Firstly, congratulations on your hard work and success! It’s amazing how consistently your winning trades! I’m new to this method, and watching someone like you definately gives inspiration.
One question- I noticed sometimes, even when the extreme candle isnt reaching to the midd bb band, you draw the CBL at the midline- how do you decide where to draw the CBL on an extreme candle? Do you simply draw it in the middle when its a ‘fairly large’ candle in order to prevent pips from being eaten?
And do you only trade in the direction of the long term trend?
Thanks for the above Nathan. Nice to see another Quigley around
According to Tymen’s method you can cut the Extreme Candle in half when it’s taking up a large area between the Outer BB and the Mid BB. The main idea is that you want to enter the trade once there’s been a sizeable retracement towards the Mid BB. Once it goes so far there’s a good chance it’ll go all the way to the Mid BB I’ve found. I guess this is what Tymen found when he did all his research and it’s been working out for me.
I’ll enter trend and counter-trend trades though with counter-trend I’ll be paying pretty close attention to how the Outer and Mid BBs are looking, general news, etc. before deciding whether to trigger the trade or not. I don’t enter any limit orders for this reason as I like to see how things are going in general before entering a trade. It’s a bit subjective this part I suppose though I’ll mostly just trust the method once it looks ok on the charts in front of me.
Cheers Pip for introducing me to this method (I am a Gartley thread frequenter and saw your post about the Boilinger DNA method there).
Congratulations on your winning trades (which are the overwhelming majority, lol). I like that you’re keeping everything simple yet detailed. I hope that you continue this!
After catching the rise up I went short this time with the CBL drawn from the low of the Extreme Candle. Actually missed the entry the first time as was out at the shops but when I came back price was hovering around the line 2 candles after the Extreme Candle and I hopped in a little below the CBL with two positions of 2 mini lots and 1 mini lot. Stop was placed a little above the high of the Extreme Candle.
TP1 was hit quickly for +31 pips. Moved stop to breakeven then and let the trade run all this evening. Really not sure where price is going to go as I’m weighing up the stock market drop today vs (probable) good German data tomorrow so decided to close out the 2nd position just now and see where things stand tomorrow. After a quiet enough start to week today was a good day so not going to risk anything.
Total P&L: +72 pips
Total Account Risk: 1.07%
R/R: 0.82
Account Balance: +0.87%
Overall Account Balance: +19.03%
Been away for the weekend so a bit slow updating this. Was a fairly quiet week for me up until Friday which was a very good day. So far the method has been going according to plan though no doubt there’ll be times when it won’t be working out so well for me. Still the best thing I like about the method is the feeling of control and the definition it gives to my trading.
