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Bollinger Bands and Moving Ave - Mr. K (30)

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Published by World Reader Hub, 2022-12-08 00:22:56

Bollinger Bands and Moving Ave - Mr. K (30)

Bollinger Bands and Moving Ave - Mr. K (30)

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

In the overseas Forex trading method verification blog, how 
much win rate will you get by actually testing the trading 
method and trading technique that "have a high possibility of 
earning" with overseas Forex that can perform high leverage 
trading for a week? How much pips can you earn? It is an 
overseas Forex blog that actually trades and verifies. Please refer 
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.
Click here for recommended overseas Forex trading methods


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