Bollinger Bands is one of the classic technical analysis tools that traders love most. It reflects the standard current price deviation from a simple moving average. The boundaries of the indicator form a channel in which the main price movement takes place. A stochastic oscillator is added to the indicator as a confirmation signal and a candlestick analysis. As soon as the candle (the timeframe is set at least 5 minutes) closes beyond the upper boundary of the channel and the formation of the opposite candle begins, a turn signal appears. If at this time the stochastic is in the overbought zone (above the level of 80) and has turned down, open a sell position.
A similar strategy has been implemented in the eBolligerBands trading advisor, provided free of charge to each trader on the FxCash partner site, FreshForex broker. The advisor’s equity is fairly flat, there are no big drawdowns. The robot is universal, but the choice of a currency pair depends on the market situation, there are no uniform rules.
- Bands_Period — period of the moving average;
- Bands_Deviation — the number of standard deviations from the MA;
- MoneyRisk — deposit percentage per 1 transaction;
- extern double Lots – the number of transactions;
- Slippage – slip;
- TrailingStop – the length of the trailing stop loss;
- MinProfitForClose — the minimum income for closing a position.
Rules for working with eBolligerBands
There are no universal advisers. Therefore, in order not to remain without a deposit and not to complain about the broker (who is absolutely not guilty of using the adviser incorrectly), follow our advice.
Tips for working with eBolligerBands and other free advisors:
- Do not run the robot on a live account until you have tested. As a result of testing on the relevant period, you must answer questions about the maximum drawdown, the number of unprofitable or profitable trades in one series, the ratio of profitable to unprofitable transactions. Multi-testing will show the best periods and the best currency pairs;
- Don’t be afraid to experiment with the settings. If the robot “drains” the deposit, change the settings and watch the equity correction;
- follow the rules of money management: the risk per transaction is up to 2%, the total risk for all transactions is up to 20% of the deposit (parameters are adjusted in the settings);
- Follow the advisor’s work, it’s often better to close positions manually. Stop his work at the time of market volatility (reports, publications, news central banks, etc.);
- If the equity of the demo account is very different from the equity offered by the broker (which has an advisor downloaded), ask the broker support service. Company analysts will help eliminate the error. In exceptional cases, they can give an investment password on MyFxBook.
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