Friday, 6 January 2012

EUR/USD, bollinger band strategy

I've already told about this forex trading strategy. This looks quite promising in a trending market. In a consolidating market, it might give false or no signal. Now here is an example of trading experience with this strategy. This example is from yesterdays trading. 6 trade resulting in net 35 pips.




Strategy collected from: mt5 forum
Currency pair: EUR/USD
Time frame: 1h
Indicator: Bollinger band only

As usual, I missed the first large bearish candle where I could enter with a short position according to the strategy and thus I missed the opportunity to take about >45 pips. Huge one for a newbie like me. But as I was on demo trade, I entered into a short position at the next candle which was actually a bullish candle.

In this bullish candle, I've traded 6 times and got net 35 pips. Every time I entered a position.... I followed the trend.... that is short position when price went up.... after entering the position when price again went down....I closed that position. See where I've done it...


 Now, see the end result of this candle....


The 35 pips generating candle body became a tiny horizontal line...... Now you can see the candle starting next to my 35 pips generating candle.....it's bearish looking. Do you want to see what happened next.....


I can't believe my eyes.... two large bearish candle each one having about >40 pips.... and I don't believe that every time I miss those large candles.... by actually not seeing them live.... as I had to go to my job, I couldn't monitor the chart and missed such a large move of price..... I think, mobile trading could have saved me here.....

Happy trading!!

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