SMA-BB MultiTimeFrame system
Indicators:- 3 SMA, 10 SMA, 35 SMA, Bolinger Bands (20, 2)
Buy Rules:-
If 3 SMA is above 10 SMA and 10 SMA is above 35 SMA.
Check above condition on 15 mint timeframe, 1 hr timeframe and 4 hr timeframe. If above condition is true for all 3 timeframes then it is a signal for long entry.
Sell Rules:-
If 35 SMA is above 10 SMA and 10 SMA is above 3 SMA.
Check above condition on 15 mint timeframe, 1 hr timeframe and 4 hr timeframe. If above condition is true for all 3 timeframes then it is a signal for short entry.
TP and SL:-
Incase of Long entry place SL 3 pips below lower BB and incase of short entry, place SL 3 pips above upper BB.
TP = 30 pips.
System is based on two very basic and popular indicators. SMA is my favt and I have also used BB.
I will try to make EA for this system to backtest it.
Multiple timeframe is to confirm entry which I understand. But system is unclear about exit strategy. Which timeframe to use to set TP and SL above or below BB?
Stick to your rules
Originally posted by uniquetrader
Multiple timeframe is to confirm entry which I understand. But system is unclear about exit strategy. Which timeframe to use to set TP and SL above or below BB?
Valid point.
With just 3 pips, I think it will be 15 mint timeframe but it is better if owner tells it.
Thx for sharing the system.
First system here with both SMA and BB. BB is acting as S/R I think.
The good or ill of a man lies within his own will. – Epictetus
Exactly. I have seen similar strategies where BB's upper and lower level are considered as S/R levels and it does work very well sometimes.
It is all about practice. The more u practice the more you know about strengths of an indicator and conditions in which these strengths work.
Originally posted by ChampExactly. I have seen similar strategies where BB's upper and lower level are considered as S/R levels and it does work very well sometimes.
It is all about practice. The more u practice the more you know about strengths of an indicator and conditions in which these strengths work.
Use of BB is only at beginner levels and after that more sophisticated indicators are used to measure these levels.
The good or ill of a man lies within his own will. – Epictetus
I think this is the first system, shared here on fxstat, with Bollinger Bands.