Tag Archives: Bollinger Bands

Bollinger Bands usage vs moving average for forex trading

Does anyone believe in this statement on which may have better forecast? Bollinger Bands or some form of moving average.

Bollinger Bands do not use a subjective percentage value to place upper and lower bands around the moving average line. Rather, the Bollinger Bands react to changes in volatility automatically using standard deviations from the moving average. The standard deviation is an expression of the trading range of the asset; a smaller trading range has narrower Bollinger Bands, while a more volatile asset has wider Bollinger Bands. This also means the same percentage of price movements is captured within Bollinger Bands, or 88.9% at two standard deviations from the moving average.

Read more: What is the difference between Moving Average Envelopes and Bollinger Bands®? | Investopediahttps://www.investopedia.com/ask/answers/122314/what-difference-between-moving-average-envelopes-and-bollinger-bands.asp#ixzz54xAnWEMk
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Does this mean one should not take on a trade if the current Boll rate is closer to the middle. This means that the currency is pair is in a flat range which hs is not what you want. You would want the momentum/volatility to be in your favor pushing towards a higher spread. Let me know what you think. Would you also think 2 standard deviation could be use as the universal pivot?

 

Also, what do you think is ‘faster’ or less lagging to the real price?

Bollinger, EMA, or SMA ?

True range forex trading market random performance video

Minimize loss with linear regression for algo forex trading

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How to backtest your Bollinger Bands for trading

How to backtest your Bollinger Bands for trading

I am literally oscillating between too many tech areas which I will shoot in another email soon once things settle.

Anyhow, I hope you enjoy these popular ones from this week.

 

Machine learning for Fed rate?

Check out my view of this here along with the videos

How to backtest your Bollinger Bands

Check out the plan here

 

Thanks for reading

P.S. i am posting a lot of content so you want join my Daily Digest to keep up with what I post

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How to backtest your Bollinger Bands

How to backtest your Bollinger Bands

From a low latency HFT developer so check it out

https://www.linkedin.com/pulse/whats-how-backtesting-strategy-ariel-silahian

Thanks to him send this to my Linked In group!!

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Initial source code to Karen Supertrader with Bollinger Bands options model

Initial source code to Karen Supertrader with Bollinger Bands options model

First model and coding attack of this very popular options trading strategy. I am using simple Bollinger Bands as described in the research I have found. All files with source code available for my Quant Elite Members 

Bollinger Band equation from http://www.great-trades.com/Help/bollinger%20bands%20calculation.htm

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Important Videos with R source code for measuring strategy and performance plots of MACD, RSI, and Bollinger Bands

Hi there,
The third (and final) key video posting is now scheduled. I’ve been very pleasantly surprised by the response so far, but this is the last of the free in-depth postings if you’re not a Premium member.
I’ll be covering R source code for trading workflow incorporating the following key algorithms/strategies:
1. Moving average convergence divergence (MACD) with a plot of system performance 2. MACD applied to multiple assets and how to optimize this system 3. How to use the Omega performance measure with MACD optimization 4. Relative strength index (RSI) and plot performance for this strategy including portfolio performance 5. Bollinger Bands with strategy and portfolio performance
This posting is available to the public for one time only.
This is the last of the 3 in-depth (but free) video postings which feature R sample scripts and the source PDF with a 25 minute video presentation.
But don’t worry if you miss it. Or if you already missed the first two! All isn’t lost …
That’s because Premium members will get access to the recordings of all 3 sessions for as long as they remain members. Ensure your long-term access to all Premium materials now:
==> http://quantlabs.net/dlg/sell.php?prodData=m%2C3 <==
View more Membership benefits here:
==> http://quantlabs.net/quant-member-benefits/ <==
Good Trading,
Bryan

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Are You Ready For A NEW Perspective On The Markets? RSI? MACD? Moving Averages? Bollinger Bands? Fibonacci Levels?

Are You Ready For A NEW Perspective On The Markets? RSI? MACD? Moving Averages? Bollinger Bands? Fibonacci Levels?
These are many of the common indicators I have attempted to use the past to trade the Emini’s. Considering that these indicators ALL are based on price, it should be no spry’s that they LAG price and provide a poor roadmap to trade futures with.

The key question is: What Drives Price?

What can you use in your trading that precedes price? If you had such an “indicator” do you think that would give you an edge?

Or does this sound too good to be true… Searching for the holy Grail that we all know doesn’t exist?

Well… Let’s think about this for a moment. What makes up price?

ORDERS…Orders make up price! The buy orders and sell orders make up the order flow.

So, if the order flow could be organized into an easy way to use and interpret trading dashboard, would that not give you a NEW perspective on the market? A NEW perspective that precedes price action?

What do you have on your trading dashboard?
P.S. If You Are Struggling With Your E-Mini Trading, It Doesn’t Have To Be That Way. I Have THE Solution.

 

Fully agree with you that most indicators are useless…nay, misleading. But trend-following indicators like MAs and Paraboloc SAR are quite helpful. If you can discipline yourself not to fight the trend, you have a substantial edge. You can be a consistent winner.

 

Sorry…but I am suspicious of what you are alluding i.e that you have some kind of inside information on orders.

 

.you should be suspicious in this industry! Good for you.

The best thing I can do is show it to you so you can see it for yourself. I would like to extend an invitation to you to join us as a guest in our ES trading room. Here you will see our complete Market Map and Trading Dashboard which is based on order flow.

You will also be able to see actual orders entered! We take real-time entries and exits on the DOM.

This way you can see that we have no insider information, but rather have found the best way of organizing the order flow information that is available to everyone.

Send me an Inmail if you are interested and I will set it up.

Cheers…and keep being skeptical. 🙂

 

One more skeptical in the league. I have seen many a times that how an operator manipulated the price movement by putting false orders. If your system generating a signal with calculation of the strength of buy and sell order it might count the fake and false orders as well.

 

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I agree with you! The false orders can be a problem and I have seen traders have difficulty with that when trading off the DOM. What is key is how a traders organizes that Order Flow information. There are many ways to do that. Our group has organized it in a very visual (as opposed to mathematical) and so as to avoid the false orders. And that is key!!!

 

I do use the Parabolic SAR and MA on higher time frames…especially in the currencies which tend to have more trending moves. For intraday trading the ES I much prefer using Order Flow since the ES is in a trading range about 70% of the time intraday. Considering this condition, using trend following techniques or indicators that lag the market can be very detrimental to ones trading account!

 

Which platform do you use ?

 

I use Sierra Charts for defining and quantifying the order flow. I have been a Tradestation user for years and I have found Sierra Charts to be excellent! I use DTN IQ for data.

 

 

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I am developing a custom model which is a forex robot based on volatility and Bollinger bands

I am developing a custom model which is a forex robot based on volatility and Bollinger bands

I am working on a new custom model which will remain proprietary for now. As I cannot really publicly talk about it but I will mention that it is:
1. A forex robot with based on volatliy
2. Blends two ‘newer’ technical indicators with a Bollinger band clone
I plan to have a Tradestation and then release a Matlab version which will be part of my Premium Membership service. Register here for a free trial.

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Quant analytics: How to Use Bollinger Bands

Quant analytics: How to Use Bollinger Bands opportunitiesplanet.com
While many indicators can be used when trading the Forex market, sometimes the simplest indicators are the most effective. Bollinger bands are one of those…

I completely agree BB are an excellent indicator. I have had success using two sets of BB with different perimeters. This provides strong confluence especially when using with other indicators such as ADX or RSI.

I use bollinger bands on all my charts. Most of the time I am selling and buying the bounces off of the bottom and top bands.

The link below is for a chart that I posted on a website. It is a prime example of using the bands. Would like to read your guy’s feedback on it if you get a free chance.

http://www.intellitraders.com/sites/default/files/imagecache/node_chart_size/charts/2024/903.gif
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could you please elaborate about your trading strategy. BB, as all indicators, suffers from lag. A 20days/2stdev, for example, is lagging 10days behind the market.
Are you actually applying “mean reversion” when using it?

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