In today’s video we’re going to dive into an exciting trading strategy of Bollinger Bands.
This strategy needs a 15-minute time frame chart, and of course, now we have to go on indicators and search for the Bollinger Bands.
Once we applied the Bollinger Bands, now we have to go in its setting and inputs, then length will be 25.
Keep this in your mind that 25 length is very important for this strategy.
The technical part is done, and in the next step, we have to find a candle whose body is not touching the Bands, like this one, which is floating above these Bollinger Bands.
Now, the low of the candle will be considered as the entry point, and the high of the candle will be considered as the stop loss.
You can take a screenshot of these so later on you can use it for yourself, and the target we expect on this strategy will be one ratio to per trade.
Now I am gonna backtest this strategy in front of you guys.
So here you can see we got another candle outside the bands; its body is not touching anything.
Here is our stop loss, and here is our target, which is hit perfectly.
Let’s search for more trades, and here we found another candle.
Its low will be our entry point, its high will be our stop loss, and here it will be our one ratio 2 of target.
So, as you guys can see, it hit our target perfectly.
And here you guys can see we found another candle.
Its low will be our entry point, and its high will be our stop loss. We’re gonna make a target of one ratio two.
So here is our target; let’s see if it will hit our target or not.
It hit our target again.
Let’s search for more trades.
Here we found another candle above the moving Bollinger Bands, and its low will be our entry point, and its high will be our stop loss.
So, it hit our stop loss.
Anyways, stop losses are part of the key.
Now we have three win trades and one loss.
So, let’s search for more. Here we can see, I think it touches… yeah, this candle was touching our bands, so search for more.
This is also touching the bands, so we have to ignore this.
Here we found a candle whose body was not touching the bands, so here it is.
The low will be our entry point; here is our entry point.
Its high will be our stop loss, and we have to go for a one ratio 2 target.
And here we achieve our target.
Right, so now we have four win trades and one loss trade.
Here we found another candle whose body is not touching the Bollinger Bands.
Its low will be our entry point, its high will be our stop loss, and we’re gonna make a target of one ratio two.
So here we got another trade which achieves a profit.
Lots of you guys can say, “Why is this not a stop loss?” because the candle is showing big at this stop loss zone.
That’s not a body.
We only consider the body for a stop loss, okay?
Here we found more trades, but look at this—it gives us the entry after four to three candles, right?
Its high will be our stop loss, and we’re gonna make a target of one ratio two.
So let’s check if it will hit our target or not. It hit our target perfectly.
Now we have six win trades and one stop loss.
Here we found another trade.
Its high will be our entry point, and its low will be our stop loss.
Keep in your mind, for the long side, right?
So one ratio 2 will be our target, and it hit it perfectly.
We have now seven win trades and one loss.
Here is another candle which is floating outside the Bollinger band, but look at this—any candle is not breaking its low, so we didn’t get an entry here, right?
And another candle outside the Bollinger band—its low got broken here, and here is our entry.
Stop loss will be on the top of the candle, and it hit our stop loss.
Now we have seven win trades and two stop losses.
We found another trade here.
Its high will be our entry point, and its low will be our stop loss.
Let’s go for a one ratio two target, and let’s see.
It hit our target.
Oh yeah, it hit our target perfectly.
Keep in mind, in this stop loss side, these are only wicks, not bodies, okay?
You can check this out if you want, and here you can see it hit our target.
Now we have eight win trades and two stop losses.
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Let’s check my Bollinger strategy once again: change these settings to 20 to 25 and look for a candle outside the Bollinger band.
Right now, there is not a single one, but two minutes back there is one I can see it.
Let me show you.
So here is the candle which is outside the Bollinger band.
Its low will be our stop loss, and now we have to go for a target of one ratio 2, which is hit perfectly.
That’s all for today’s video on the Bollinger band strategy.
I hope you found this information helpful and insightful.
If you have any questions or would like to see more trading strategies, please let me know in the comments below.
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Happy trading, and I’ll see you in the next video.
