Bollinger Bands Trading System

Author: EH
Contact: Information not Provided
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Posting Date: 10/1/2016 Download Count: 28
Category: Trading System Rating: (1 votes)
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Summary:
Created for Wave59 community by EH. Only request of author is any improvements
or modifications are shared with Wave59 community. Some variable names and
filters were borrowed from Earik Beans systems. Thanks Earik!

MODES
-five different "modes" available, numbered 1 through 5
-in all modes, interaction with upper bollinger band initiates short
-in all modes, interaction with lower bollinger band initiates long

#1 - only initiate trade when bar close outside or equal to either band
-never doubles contract size

#2 - only initiate trade when bar close outside or equal to either band
-if low is >= upper band or high is <= lower band, double contract size

#3 - only initiate trade when low <= lower band or high >= upper band
-never doubles contract size

#4 - only initiate trade when low <= lower band or high >= upper band
-if low is >= upper band or high is <= lower band, double contract size

#5 - only initiate trade if low is >= upper band or high is <= lower band
-only trades one contract



STRATEGY
-takes advantage of market tendency to over extend itself and places trades in
opposite direction of over extension

FILTERS
-short filter - only go short on up or flat close (close >= open)
-loss filter - if exits for loss, do not take trade in same direction on same bar -
example: if we go long and exit x bars later for a loss, do not initiate another long
trade on that same bar

EXIT SYSTEM
-exit and reverse trade if opposite signal generated - example: if long and mode 1
selected, exit long and initiate short if close >= upper band
-exit after >= profit_exit_bars, trade is profitable and profit was not increased on last
bar (close < close[1]) - this helps to extend profit as we do not want to exit if trade
trend is still moving in our favor
-exit after >= loss_exit_bars and trade is not profitable

Please see Wave59 forum post for additional information and example equity curves


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