16# Bollinger Band scalp GBP/JPY Trading System

Three Bollinger Bands Scalping

Bollinger Bands Scalp is a strategy for short time frame .

The trading idea is to enter the position when the price action reaches extreme area of the Bollinger bands.

 

Setup Strategy
Pairs: GBP/JPY, EURUSD, USDCHF, CADCHF, EURGBP, AUDNZD.
Time Frames: 1M, 5M
Maximum Spread: 0.0002 (ECN Account)
Price Chart: Bar Chart or candles.
Indicators:
Bollinger Band (50) deviation 2 - Color: Red
Bollinger Band (50) deviation 3 - Color: Orange
Bollinger Band (50) deviation 2 - Color: Red
Trading rules
Sell

Enter a short position when the price crosses the upper red band, reaching at least halfway to the orange band (preferably reaching the yellow band, although not always the case). Anticipate a retracement towards the center of the Bollinger Bands, aiming to profit from this retracement.
Buy:
Similar to selling, wait for the price to range between the lower red and yellow bands. Trade the retracement towards the center of the Bollinger Bands.
Profit Exit:
Take profit at 5 to 10 pips, or exit at the middle band.
Stop Loss:
Implement two types of stops - time-based and loss-based.
Time-Based Stop:
Estimate how long it should take for the market to move in the expected direction. If the planned time has elapsed, close the order to avoid waiting for potential losses.
Loss-Based Stop:
Given the tight time frames, set very tight stops. In some instances, a quick 3-minute trade may not allow for a conventional stop loss. Rely on your money management system to determine appropriate stops.
Note: It is crucial to thoroughly test and validate any trading strategy in a simulated environment before applying it to live trading. Additionally, strict adherence to risk management principles is recommended for successful and sustainable trading.

System, Bollinger  Band scalp GBP/JPY
System, Bollinger Band scalp GBP/JPY

Write a comment

Comments: 1
  • #1

    Mgd_Elislam (Wednesday, 06 March 2013 14:00)

    my friends give me a recommendation to this system
    so, thank you

    but could you please give us more explanation about SL "your stops will be given to you by your money management system." and what is your recommendation money management system

Scalp GPJ/JPY Trading System
Bollinger Bands scalp GBP/JPY trading system strategy with three Bollinger bands with three deviations standard for each one.
tpl bollinger band scalp.zip
Compressed Archive in ZIP Format 792 Bytes