An interesting side note. I’ve had some good trades set up in the 30M, where 1H and 4H are close. If the 1H trade makes in the same pair, I take it too, essentially doubling the trade in that pair. But I count these as separate trades and stay to 2% risk on each trade. If the 4H makes I’ll trade it too, so it’s possible I could have three trades in the same pair. But only in the same direction. I won’t trade both ways because that’s just a hedge and I don’t hedge. I still follow the exit rules on each trade though, letting me take some profits off as the trade set goes along. Like I said, I’ll need to demo for a while to see if it works long term, but it follows all Tymens rules.
The only think I’m foggy on is the smaller entry candle. If the first candle to close past the CBL is not a smaller candle than the extreme candle then it does not qualify as the entry candle. Often when this is the case the pa will pull back and we will see smaller candles. They don’t go far enough to qualify as new extreme candles, and the the pa moves back past the CBL and moves into profit…but we haven’t yet entered. Which or where is the entry candle? By entry candle, I mean the candle that signals that we enter the trade on its close.
I remember seeing a diagram/chart that Tymen posted but I haven’t found it yet, and I don’t remember exactly this scenario being addressed.
Been following from day one, agree with most that we should continue what we have started. But there is still part of me that wants to tie all of this back to the original premise of the thread, trading with the trend. To me this means trading with the wind at my back and giving trades opportunities to achieve high reward:risk ratios. I know that most people prefer a high win/loss ratio to a high reward/ratio, but I would greatly appreciate it if, after we finish the details the bollinger DNA method, we could investigate its use in a “less scalpy more trading with the trend” approach.
Those are my feelings too.
Actually, I have been thinking for the past week or so that this method would be picture-perfect for trading into longer-term trends as part of a two-prong strategy.
I currently have two charts open for each of the six pairs I trade. The higher TF chart helps me maintain an idea of overall trends, as well S/R lines drawn off the daily, 4H and 1H TFs. The shorter TF charts, whether you work from 5m, 15m or 30m TF could be a great place to launch DNA trades.
You always take your TP1 and then, after moving the second trade to BE, check the higher TF charts to see if it would be beneficial to simply leave the 2nd trade open as part of an ongoing larger trend. Obviously, price action could always retrace back to this point, giving you zero on the second trade. But with a high win rate on your TP1s you’d probably still be happy and when you DO catch the wave as part of a larger trend you wouldn’t be making 15 or 20 pips but possibly much, much more.
The greatest advantage of using DNA this way is that you would have a larger lot size so profits made from letting a trade run for more pips really becomes lucrative. I’m thinking of using BB DNA as a way to augment my naked trend trading using Peaks and Valleys on the hourly chart.
(See the attached PDFs for some short, concise breakdowns of trading peaks and valleys; I don’t want to derail this thread with too much discussion of them.)
Peaks and Valleys.pdf (102 KB)
Peaks And Troughs.pdf (181 KB)
Yeah this is the type of discussion I’m hoping we end on. Thanks for the attachments, they were helpful.
As a side note:
And a bit of a joke:
I thought when Tymen1 said “comment”, that Tymen1 was gonna say…
“Gotcha again, this aint the naked trading method.”
Hahahahhah.
Interesting when tymen1 was ‘suggesting’ 100 pip moves for the win, and now is straight forwardly saying ‘multiple lots, quick out’…
I think that helps to remove people who arent paying attention to Mr. Tymen1, and/or want something, rather than a sweet basis for applying
yourself to make some money/pips.
Red
totally agree.
my thoughts are: "if we’re so good at telling when a trend (Bubble or Saussage) is ending , why aren’t we on the RIGHT SIDE of it until that minute comes??
whatever happend to trading the trend? 
I posted some questions the other day and none were answered, so I’ll retry hoping you guys won’t ignore me this time :o
my (first) question is, has any of you noticed how rare O-Os are?
(Outer to Outer, alligned with middle band)
[B]has anyone actually seen an O-O trade on live charts?[/B]
I can’t seem to find any of 'em.
could anyone share his toughts on this matter?
im not as experienced as some of the posters on here, but here is my opinion…
rules are rules, and the ones you have set out are easy to follow. This method is the method you have developed and i think this is what everybody wants to learn…
I hope we continue with this method, as i think its easy to follow once you stick to the rules…
thanks tymen
and thanks to merchant price who has put the rules in one place, which makes them even more easier to follow.
p.s i have done alot of testing and i found m30 to be a reliable TF, also i found it a good idea not to be in trades prior to news (i didnt enter 30 mins before news time) and i also stuck to the major pairs…4 trades today…3 winners (god knows why i even entered EUR/GBP!! i hate this pair with a vengence lol)
big gaps again this week…so why not wait and let price do its thing before taking the risk?
use your experience from your past trading to help fine tune your approach to this method, and i think we can all be successful using it.
thanks once again.
This one is for you Parsush and anyone not seeing trades.
It has everything. Flat BB’s Bubble that turns into a sausage even a retrace to the mid-BB.
By jcgibson at 2010-04-20
John
Just adding a vote to continue with this current method. The rules are clear and the time you are away Tymen provides time to test the pants off the method as it stands- just wait for the library of questions on your return… Thanks also to Merchant Prince for the pdf’s, much appreciated.
LOL, I sympathize with you on EURGPB. I lost on that trade today too, but not much. I bailed early when it quickly turned against me. I know how nasty that pair can be. I should delete it from my watch list and replace it with the Mexican Peso, or anything else. Just kidding, but I took a BB DNA USDCAD short that was great. BB DNA also paid off like an ATM on USDJPY and EURUSD. I do find you have to use some experience and common sense to apply this method. I often bail out early before the SL if the trade goes against me quickly. I’ll also stick with a trade past TP2 if it’s still going strong like the USDCAD did today. It went about 60 pips beyond my TP2 in just a few candles.
I’m also not taking most trades that oppose a strong trend on the next higher time frame. Perhaps that answers the question that was posed about trading with the trend. By all means! Check the trend in the TF above your trade and don’t take the trade if you don’t like it. There’s no rule that you have to take every trade. In the end, this will probably always be as much art as science. But that only makes common sense. If a general downtrend is 50 candles long, lots more candles will form lower highs than higher lows. If you get in on a higher low with a BB DNA entry, odds are good price will travel back toward the mid BB. But only one candle will be lower than all the rest in a down trend. Good odds for trading with the trend, poor odds to try to pick the very bottom.
Thanks a lot for your efforts John! very much appreaciated.
however, there are 2 things bothering me on this chart:
- I don’t see the O-O trade (please tell me on which candle the entry is)
- I think the retracement wouldn’t be triggered because the size rule isn’t met, so no money there.
what am I missing?
thanks!
If you want to see good current O-O and O-BB action, check out the 4H EURUSD. 300 pips down from Ap. 9 to today. Obvious entry, still in a BB walk. A shame I didn’t know what the rules were back then. But I do now. Now I’m like the lion waiting paitently to pounce on my prey. And note, if you go up to the daily chart, EURUSD has been in a strong downtrend since Dec 2010.
Graviton i agree with what your saying, if your entering a tymen method trade in the direction of a strong trend it can only but help put the odds more in your favour…
extreme candle is the green one on the far left. entry is on the open of the second red candle to the right of it. This is well described in the pdf by Merchant Prince.
Graviton is correct.
The second retrace is in a BB squeeze so again read the PDF MerchantPrince went to the trouble on making for us.
The OO trade is the first trade that Graviton mentioned but when the BB’s expand I would stay in the trade.
So read the PDF’s and then study charts and you will find trades but the PA will do what it wants to do so you even following the rule is no guaranty you will win every trade.
Hey there tymen1,
Just wanted to say that I am still around, although I have had to stop following from about page 210, as I have been piled up with a lot of work, in preparation for my upcoming GCE A-Levels.
[B]I believe however that we should continue with the method you have been outlining, which gives superior win/loss ratio, and simply trade it up with higher lots, than to revert back the the previous strategy where losing is more frequent. Despite the larger reward/risk ratio of the latter, I believe that the former method when combined with large lots/leverage will be quite formidable.[/B]
I am looking forward to catching up, comprehending, and then demo-ing the trades.
Thanks to everyone who has participated so far, and MerchantPrince for those compacted PDFs, which allow me to stay relatively informed on the topic.
PS. As an added benefit, since Bollinger Bands are the only indicators we use, it allows me to use my mobile phone to monitor and even enter trades, which is immensely useful, since I am at school for the majority of my day. 
jcgibson and Graviton, thanks for your answers to parsush.
I was also a little unclear on this scenario, despite having read the PDF.
Tymen’s comment mentions that the 2 rules don’t apply, and that we need only calculate the CBL… but to what end? It appears we are not using it to enter.
As far as I can tell from your responses to parsush, we are entering on the first candle to close free of the BB… is that correct?
Thanks again guys
Oh, and regarding Tymen’s question, I’m with the majority in saying I’d be happy to continue on the current path.