Bollinger Bands and Moving Average "Buy / Return" Trade / Win
Rate 81.5%, + 140.4pips Win
Outline of verified trading method
What is "Bollinger Bands"?
What is a "buy / return" trade?
Features of Bollinger Bands and Moving Average "Buy / Return"
Trade
Advantages and disadvantages of "buying / returning" trading of
Bollinger Bands and moving averages
merit
Demerit
Entry timing for Bollinger Bands and moving average "buy / return"
trades
Procedure # 1. Check the direction of the trend
Procedure # 2. Confirm that you touch ± 2σ
Procedure # 3. Wait for the market to reverse before entering
Exit timing of Bollinger Bands and moving average "buy / return"
trade
Profit timing part 1. Touch ± 3σ
Profit timing # 2. The prevailing rate reverses above ± 1σ
Loss cut point # 1. Touch ± 3σ
Loss cut point # 2. Place a stop order
Trade verification of Bollinger Bands and moving average "buy /
return" trades
[Bollinger Bands and Moving Average "Buy / Return" Trade] MT4 /
MT5 Template
October 1, 2018
October 1, 2018-October 2, 2018
October 2, 2018-October 3, 2018
October 3, 2018-October 4, 2018
October 3, 2018-October 4, 2018
October 4, 2018-October 5, 2018
October 5, 2018
inspection result
Verification result consideration
Good points of trading method
Bad points of trading method
Points that can be improved
Summary
Bollinger Bands and Moving
Average "Buy / Return" Trade /
Win Rate 81.5%, + 140.4pips Win
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if you have a trading method with a high winning percentage.
Outline of verified trading method
This time, it is a trade that uses the techniques of "Bollinger
Bands" and "Buy / Return".
What is "Bollinger Bands"?
A technical index that measures the fluctuation range (volatility)
of the market from price data for a certain period, predicts the
fluctuation range of the price using the "standard deviation"
using statistics, and displays it on the chart.
Say.
The Bollinger Bands are formed by incorporating the price
volatility and standard deviation into the moving average. By
graphing the standard deviation, it is possible to predict future
exchange rate changes from statistical probability theory.
With standard deviation
Percentage of plus or minus 1σ: 68.26%
Percentage of plus or minus 2σ: 95.44%
Percentage of plus or minus 3σ: 99.73%
It will be.
The reference center line is the moving average line, which is
called the "middle line" or "center line".
Bollinger Bands is a technical analysis that utilizes statistics
and can be predicted as follows.
The basic idea is
The prevailing rate is higher than + 2σ on the uptrend
→ Rare event that occurs only 4.56%
→ The rate after this is likely to return to between + 2σ
→ It is likely to win in the “sell” entry
The prevailing rate is below -2σ on the downtrend
→ Rare event that occurs only 4.56%
→ The rate after this is likely to return to between -2σ
→ Highly likely to win in the "buy" entry
It will be something like that.
teacher
Among the Bollinger bands, this "± 2σ" is often used.
MT4 settings
Select the indicator "Bollinger Bands"
Period "20"
Standard deviation "1" "2" "3"
Style: green
teacher
It is recommended to change the color slightly or change the
line thickness for each standard deviation, as it will be easier
to judge. Especially for "± 2σ", it is recommended to change
the color and thickness.
What is a "buy / return" trade?
What is bargain buying?
A method of entering by "buying" when the market is
temporarily down when the market forms an uptrend
What is a return sale?
A method of entering by "sell" when the market is temporarily
rising when the market forms a downtrend and "returns"
In Forex trading, the trading method adopted by many investors
is that when a big trend moves in the opposite direction for a
moment, it is assumed that it will return to the original trend
with a position, so "the winning rate is high". It is a
popular "solid" trading method.
This time
In "Bollinger Bands"
The prevailing rate is above +
2σ on the uptrend → The rate after this is likely to return to
between + 2σ The prevailing rate is below -2σ on the
downtrend → After this The rate is likely to return between -2σ
With the idea
By "buying and selling back"
Even if the prevailing rate temporarily
declines when an uptrend is formed, there is a high possibility
that it will return immediately . When a downtrend is formed,
even if the prevailing rate rises temporarily, it will soon
return. Likely to return to
It is a trading method that adopts both ideas .
Both are solid trading methods with careful attention, so
a "high win rate" is expected.
Features of Bollinger Bands and Moving
Average "Buy / Return" Trade
This trading method is
We start by knowing the direction of the trend from the slope
of the moving average.
MT4 settings
Select "Moving Average" for the indicator
Period "200"
Type "Simple"
Style: orange red
Since it is a moving average (SMA) of 200 candlesticks, it
has only a gentle slope ...
Diagonally upward to the right → Uptrend
Diagonally lower right → Downtrend
Almost horizontal → Range market
Can be judged.
"Buying / returning" is a trading method that cannot be fought
in the range market, so we will not trade in the range market.
Moving average is diagonally upward to the right =
Uptrend
If you can judge
Wait for the prevailing rate to fall below -2σ.
"Buy" entry when the prevailing rate falls below -2σ, reverses
and rises
Moving average line is diagonally downward to the
right → Downtrend
If you can judge
Wait for the prevailing rate to fall below + 2σ.
"Sell" entry at the timing when the actual rate divides + 2σ
above and reverses and rises
I have a position in the form of.
If you take this entry timing
1. 95.44% chance of returning to within ± 2σ of Bollinger
Bands
2. Certainty of proactive trading of bargain buying and return
selling
You can trade with both.
Advantages and disadvantages of "buying /
returning" trading of Bollinger Bands and
moving averages
merit
High win rate
Many trading opportunities
Because it is in order, it will be "small loss and large
profit"
Clear trade timing
Demerit
Small profit margin
In some cases, you exit before the profit margin grows.
Entry timing for Bollinger Bands and moving
average "buy / return" trades
Procedure # 1. Check the direction of the
trend
The trend confirmation by this trading method is done at
200SMA (moving average line).
200SMA (moving average) is diagonally upward to the right
→ Uptrend
200SMA (moving average) is diagonally lower right →
downtrend
200SMA (moving average) is almost horizontal → Range
market → Trade off
Procedure # 2. Confirm that you touch ± 2σ
Uptrend
When the actual rate touches -2σ, prepare for entry
Downtrend
When the actual rate touches + 2σ, prepare for entry
Procedure # 3. Wait for the market to
reverse before entering
Uptrend
When the actual rate touches -2σ, prepare for entry
"Buy" entry when the prevailing rate reverses upwards (when
it starts to rise)
Downtrend
When the actual rate touches + 2σ, prepare for entry
"Sell" entry when the prevailing rate reverses downwards
(when it begins to fall)
Exit timing of Bollinger Bands and moving
average "buy / return" trade
Profit timing part 1. Touch ± 3σ
The probability of touching ± 3σ is only 0.027% .
It is no exaggeration to say that this is the line that can
secure the most profits.
for that reason
"Buy" position → Touch + 3σ → "Profit"
"Sell" position → Touch -3σ → "Profit"
And confirm the profit.
Profit timing # 2. The prevailing rate
reverses above ± 1σ
The shape that touches ± 3σ above is the best shape, but the
probability is only 0.027%, so it does not occur easily.
Therefore, even in the middle of the process, if you can see
the trend reversing, you will make a profit.
"Buy" position → If the prevailing rate begins to fall above +
1σ → "Profit"
"Sell" position → If the prevailing rate begins to fall
below -1σ → "Profit"
Loss cut point # 1. Touch ± 3σ
The point of loss cut is
Failure of "Buy / Return"
However, this means that if you think that you will return to
the original trend direction, the trend will just reverse.
Even for loss cut, ± 3σ on the opposite side is used.
"Buy" position → Touch -3σ → "Loss cut"
"Sell" position → Touch + 3σ → "Loss cut"
Loss cut point # 2. Place a stop order
Rarely
The trend reverses in parallel with the Bollinger band without
touching the loss cut condition ± 3σ.
Things can happen.
At this time, there is a possibility that the loss will increase.
teacher
It's a good idea to place enough stop orders at the time of
entry.
I think you should have a grace period of 20 pips.
Trade verification of Bollinger Bands and
moving average "buy / return" trades
MT4 / chart / technical analysis settings
5 minutes
US dollar / yen
Bollinger Bands: 20MA, "± 1σ" "± 2σ" "± 3σ" display
Moving average: 200SMA (simple moving average)
308 download
[Bollinger Bands and Moving
Average "Buy / Return" Trade]
MT4 / MT5 Template
Download filetemplate_bollinger_sma.zip – 2 KB
Trade rules
After the uptrend occurs, if the prevailing rate
touches "-2σ", "buy" entry
After the downtrend occurs, if the actual rate touches "+
2σ", "Sell" entry
Touch "+ 3σ" in the "Buy" position to "Profit"
If you touch "-3σ" in the "Sell" position, "Profit"
If the prevailing rate begins to fall above "+ 1σ" in
the "buy" position, then "profit"
Verification period
October 1, 2018-October 5, 2018
October 1, 2018
Position direction "Buy"
Entry: 113.872
Exit: 113.908
+3.6 pips profit
Position direction "Buy"
Entry: 113.865
Exit: 113.917
+5.2 pips profit
Position direction "Buy"
Entry: 113.882
Exit: 113.947
+6.5 pips profit
Position direction "Buy"
Entry: 113.952
Exit: 114.014
+6.2 pips profit
Position direction "Buy"
Entry: 113.94
Exit: 113.902
-3.8 pips loss
Position direction "Buy"
Entry: 113.891
Exit: 113.962
+ 7.1 pips profit
October 1, 2018-October 2, 2018
Position direction "Buy"
Entry: 113.926
Exit: 113.97
+ 4.4pips profit
Position direction "Buy"
Entry: 113.955
Exit: 113.998
+ 4.3pips profit
Position direction "Buy"
Entry: 113.967
Exit: 113.913
-5.4 pips loss
Position direction "Buy"
Entry: 113.904
Exit: 113.996
+9.2 pips profit
October 2, 2018-October 3, 2018
Position direction "Sell"
Entry: 113.82
Exit: 113.686
+13.4 pips profit
Position Direction "Sell"
Entry: 113.763
Exit: 113.773
-1.0 pips loss
Position Direction "Sell"
Entry: 113.804
Exit: 113.773
+ 3.1 pips profit
Position Direction "Sell"
Entry: 113.877
Exit: 113.773
+10.4 pips profit
Position direction "Sell"
Entry: 113.735
Exit: 113.705
+3.0 pips profit
Position Direction "Sell"
Entry: 113.791
Exit: 113.705
+ 8.6pips profit
Position Direction "Sell"
Entry: 113.661
Exit: 113.602
+5.9 pips profit
October 3, 2018-October 4, 2018
October 3, 2018-October 4, 2018
Position Direction "Buy"
Entry: 114.388
Exit: 114.289
-9.9pips loss
Position Direction "Buy"
Entry: 114.305
Exit: 114.358
+5.3 pips profit
Position direction "Buy"
Entry: 114.237
Exit: 114.353
+11.6 pips profit
Position Direction "Buy"
Entry: 114.304
Exit: 114.375
+ 7.1 pips profit
October 4, 2018-October 5, 2018
Position Direction "Sell"
Entry: 113.802
Exit: 113.878
-7.6pips loss
Position direction "Sell"
Entry: 113.911
Exit: 113.852
+5.9 pips profit
Position direction "Sell"
Entry: 113.923
Exit: 113.851
+ 7.2pips profit
October 5, 2018
Position direction "Sell"
Entry: 113.92
Exit: 113.861
+5.9 pips profit
Position direction "Sell"
Entry: 114.01
Exit: 113.769
+ 24.1pips profit
Position direction "Sell"
Entry: 113.777
Exit: 113.676
+10.1 pips profit
inspection result
Number of trades: 27
wins and losses: 22 wins and 5 losses
Win rate: 81.5% Profit and
loss: + 140.4pips
One trade profit and loss: + 5.2pips
Number Entry entry exit Profit Win
of times direction and loss or lose
First buy 113.872 113.908 + Win
time 3.6pips Win
Second buy 113.865 113.917 +
time 5.2pips
Third buy 113.882 113.947 + Win
time
6.5pips
4th buy 113.952 114.014 + Win
6.2pips
5th time buy 113.940 113.902 -3.8pips negative
6th time buy
113.891 113.962 + Win
7.1pips
7th time buy 113.926 113.970 + Win
4.4pips
8th time buy 113.955 113.998 + Win
4.3pips
9th time buy 113.967 113.913 -5.4pips negative
10th buy 113.904 113.996 + Win
time
9.2pips
11th Sell 113.820 113.686 + Win
time
13.4pips
12th Sell 113.763 113.773 -1.0pips negative
time
13th Sell 113.804 113.773 + Win
time
3.1pips
14th Sell 113.877 113.773 + Win
time
10.4pips
15th Sell 113.735 113.705 + Win
time
3.0pips
16th Sell 113.791 113.705 + Win
time
8.6pips
17th Sell 113.661 113.602 + Win
time
5.9pips
18th buy 114.388 114.289 -9.9pips negative
buy
19th buy 114.305 114.358 + Win
time buy
Sell 5.3pips
20th Sell
time Sell 114.237 114.353 +11.6 Win
Sell pips
21st Sell
time 114.304 114.375 + Win
22nd 7.1pips
time
113.802 113.878 -7.6pips negative
23rd
time 113.911 113.852 + Win
24th 5.9pips
time
113.923 113.851 + Win
25th
time 7.2pips
26th 113.920 113.861 + Win
5.9pips
114.010 113.769 + Win
24.1pips
27th Sell 113.777 113.676 + Win
time
10.1pips
Verification result consideration
Good points of trading method
High win rate
Win rate: 81.5%
It has a high winning percentage among the trading methods
we are verifying. It can be said that the winning percentage is
sufficient.
Many trading opportunities
Having 27 trading opportunities in 5 business days means that you
have 5-6 trading opportunities a day. If it is day trading, you
can think of it as a sufficient trading opportunity.
Even if you are a side business investor, you should have the
opportunity to trade once or twice a day.
Entry timing and exit timing are clear
Entry and exit are set at relatively easy-to-understand timings,
so even beginners can trade in the same way.
Bad points of trading method
Small profit margin
Although the winning percentage is high, it is a trading method
that rides on a small trend, so the width of one win is not
so large.
Points that can be improved
Development of "profitability" timing to
increase "profit margin"
What I noticed while doing it
If you "profit" according to the rules, even in the situation "I
was able to increase profits so far", you will be profitable
quite short.
If the prevailing rate reverses after exceeding "±
1σ", "profitability"
This means that while it is a highly reliable profit timing,
there is also a large amount of profit that is being missed due
to excessive care.
It will be possible to further increase profits by
developing "profitable" timing by using other technical analysis
methods together.
Summary
As a verification result of the "buy / return" trade of Bollinger
Bands and moving averages
The winning percentage is quite high
Many trading opportunities
Entry timing and exit timing are clear
teacher
Since the winning rate is high and there are ample trading
opportunities, it can be said that even beginners are likely to
make a profit if they do not make a mistake. Since it is a
trading method that has been carefully considered, there is no
problem even if you increase the trading volume once you can
keep a stable winning percentage. Recommended as a stable
trading method.
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