BollingerBands

Did Bollinger Bands help you?

  • Yes

    Votes: 239 77.9%

  • No

    Votes: 68 22.1%
  • Total voters
    307
columbus

columbus

Well-Known Member
#771
#771



It is rather OVER compensated,when compared to yesterday's graph.
 
M

mds1

New Member
#772
#772
Dear Mr Colombus
I have enjoyed reading this thread and seeing your charts which are very helpful, i am an indian based in the UK and would love to adopt your system for trading the FTSE, but i struggle to understand how you can differentiate between Grazing and piercing, this system works well when ranging but when the market is trending you will get punished.

I would love to know how you decide on which trades to take and ones which are void.

Once again thanks for your insight and help, you are a good chap

Regards
MDS
 
Last edited:
columbus

columbus

Well-Known Member
#774
#774
columbus

columbus

Well-Known Member
#775
#775
mds1 said:
Dear Mr Colombus
I have enjoyed reading this thread and seeing your charts which are very helpful, i am an indian based in the UK and would love to adopt your system for trading the FTSE, but i struggle to understand how you can differentiate between Grazing and piercing, this system works well when ranging but when the market is trending you will get punished.

I would love to know how you decide on which trades to take and ones which are void.

Once again thanks for your insight and help, you are a good chap

Regards
MDS
Click to expand...
Dear MDS,

Thank you. Piercing means 2 different coloured candles going
out of top or bottom bands depending on Long or Short side of
the call.The example of grazing is found in the attached chart.
It is nothing but riding either top or bottom outer boundaries.

Yes ,the method works very well in case of Range bound markets
(Even better in conjunction with RSI) but in trending markets
you observe absence of candles in other band.(Top band in case
markets go down and bottom band in case the market rises).

Generally I wait for the PIERCE to make a call.

 
bandlab2

bandlab2

Well-Known Member
#776
#776
Here is the afl i wrote for this. I have 4 entry rules
1. Piercing
2. Grazing
3. Either Piercing or Grazing
4. Use RSI overbought/sold condition

Overall rule1 gave better results. I tried on 3 min TF for intraday. For positional trades, 1 hour TF and rule 4 is a good combo


Code: 
_SECTION_BEGIN("Bollinger Bands");
// Entry Rules : 1 - Piercing 2 - Grazing 3 - Piercing and Grazing 4 - Use RSI
Rule=Param("RULES: 1-P, 2-G, 3-PZ, 4-RSI",1,1,4,1);
P = ParamField("Price field",-1);
Periods = Param("Periods", 20, 2, 300, 1 );
Width = Param("Width", 2, 0, 10, 0.05 );
UseRSI= ParamToggle("Use RSI", "No|Yes", 0);
RSI_Periods = Param("RSI Periods", 14, 2, 300, 1 );
RSI_OB = Param("RSI OB", 70, 5, 300, 1 );
RSI_OS = Param("RSI OS", 30, 5, 300, 1 );

RiskAmount=Param("Risk Amount",300,50,10000,50);
RiskRewardRatio=Param("Risk Reward Ratio ",1,0.1,100,0.1);




Color = ParamColor("Color", colorCycle );
Style = ParamStyle("Style");
//Plot( C, "Close", ParamColor("Color", colorWhite ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() ); 
//PlotOHLC(Open,High,Low,Close,"",colorWhite,styleCandle);
//Plot(C,"Price", colorBlack, styleCandle );
PlotOHLC(Open,High,Low,Close,"",colorWhite,styleCandle);


Plot(BBandTop(C,Periods ,Width ), "BBTop" + _PARAM_VALUES(),colorDarkGreen,styleThick|styleDots); 
Plot(BBandBot(C,Periods ,Width ), "BBBot" + _PARAM_VALUES(),colorDarkGreen,styleThick|styleDots); 

//PlotOHLC(BBandTop(C,20,2.25), BBandTop(C,20,2.25),BBandTop(C,20,1),BBandTop(C,20, 1),"Cloud",colorGrey50,styleCloud|styleNoLabel); 
//PlotOHLC(BBandBot(C,20,2.25),BBandBot(C,20,2.25),BBandBot(C,20,1),BBandBot(C,20,1),"Cloud",colorGrey50 ,styleCloud|styleNoLabel);
_SECTION_END(); 

bb202t = BBandTop(C, Periods , Width );
bb202b = BBandBot(C,Periods , Width );

green = O<C;
red = O>C;


// without using RSI. piercing

// prev prev bar is red and pierced bb bottom, prev bar is green and closed above bb bottom, buy at open of this bar
BuyCond1 = Ref(Cross(bb202b,L ),-2) && Ref(red,-2) && Ref(green,-1) && Ref(C>bb202b,-1) ;

// prev prev bar is green and pierced bb top, prev bar is red and closed below bb top, sell at open of this bar
SellCond1 = Ref(Cross(H,bb202t ),-2) && Ref(green,-2) && Ref(red,-1) && Ref(C<bb202t,-1)  ;


// without using RSI. grazing

//  prev prev bar is green and pierced bb top, prev bar is also green and pirced bb top, buy at open of this bar
BuyCond2 = Ref(Cross(H,bb202t ),-2) && Ref(green,-2) && Ref(H>bb202t,-1) && Ref(green,-1) ;

// prev prev bar is red and pierced bb bottom, prev bar is also red and pirced bb bottom, sell at open of this bar
SellCond2 = Ref(Cross(bb202b,L),-2) && Ref(red,-2) && Ref(L<bb202b,-1) && Ref(red,-1) ;


// using  RSI. piercing

// use RSI , prev prev bar is red and pierced bb bottom, prev bar is green and closed above bb bottom, buy at open of this bar
BuyCond3 = BuyCond1  && Ref(RSI(RSI_Periods)<RSI_OS,-1);

// use RSI , prev prev bar is green and pierced bb top, prev bar is red and closed below bb top, sell at open of this bar
SellCond3 = SellCond1   && Ref(RSI(RSI_Periods)<RSI_OS,-1);

ruleNumber = IIf(SellCond1 OR BuyCond1, 1, IIf(SellCond2 OR BuyCond2, 2, IIf(SellCond3 OR BuyCond3, 3, 0)));


Buy = IIf(Rule==1, BuyCond1 , IIf(Rule==2, BuyCond2, IIf(Rule==3, BuyCond1 OR BuyCond2, BuyCond3)) );

Sell = IIf(Rule==1, SellCond1 , IIf(Rule==2, SellCond2, IIf(Rule==3, SellCond1 OR SellCond2, SellCond3)) );



PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-15);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-15);


BuyPrice = IIf(Buy, O,0);
SellPrice = IIf(Sell, O,0);


BuySL = IIf(Buy, (round(Ref(L,-2)*0.998*10))/10 ,  0);
SellSL= IIf(Sell, (round(Ref(H,-2)*1.002*10))/10 ,  0);

BuyTP=IIf(Buy, (round((BuyPrice+(BuyPrice-BuySL))*RiskRewardRatio*10))/10, 0);
SellTP=IIf(Sell, (round((SellPrice-(SellSL-SellPrice))*RiskRewardRatio*10))/10, 0);


//money management
lotSizeb = round((riskAmount/(BuyPrice-BuySL)));
lotSizes = round((riskAmount/(SellSL -SellPrice )));



if( Status("action") == actionIndicator ) 
(

Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}}  Op %g, , Hi %g, Lo %g, Cl %g (%.1f%%) {{VALUES}}",  O,H, L,C, SelectedValue( ROC( C, 1 ) ) )+"\n"+EncodeColor(colorWhite)+ "BB-RSI System" + " - " +  Name() +  EncodeColor(colorWhite) +

 "\n" +EncodeColor(colorYellow) + WriteIf(((BuyPrice) ) , "Position Size :  "+( lotSizeb )+"  ","")+ WriteIf(((SellPrice ) ) , "Position Size :  "+( lotSizes )+"  ","")+
WriteIf((Buy OR Sell ), " Rule #  :  "+( ruleNumber )+"  ","")+
WriteIf((Buy OR Sell ), " RSI  :  "+( RSI(RSI_Periods))+"  ","")+

WriteIf((Buy ), "GO LONG :  "+( BuyPrice)+"  ","")+
WriteIf( Buy , "     -     LONG TP :  "+(BuyTP )+" ","")+
WriteIf(Buy , "    -    LONG SL :  "+(BuySL ),"")+

"\n"+
EncodeColor(colorRed) +
WriteIf(Sell , "GO Short :  "+( SellPrice )+"  ","")+
WriteIf(Sell , "    -    Short TP :  "+(SellTP ),"")+
WriteIf( Sell , "     -     Short SL :  "+(SellSL )+" ",""));




//exploration
AddColumn( IIf(Buy, 66, IIf(Sell, 83,01 )), "GO", formatChar, colorWhite, bkcolor= IIf(Sell,colorDarkRed,colorDarkGreen) );
AddColumn( IIf(Buy , BuyPrice, IIf(Sell , SellPrice,01 )), "ENTRY@", 1.2, colorWhite, bkcolor= IIf(Sell,colorDarkRed,colorDarkGreen) );
AddColumn( IIf(Buy , BuyTP , IIf(Sell , SellTP ,01 )), "TP@", 1.2, colorWhite, bkcolor= IIf(Sell,colorDarkRed,colorDarkGreen) );
AddColumn( IIf(Buy , BuySL , IIf(Sell , SellSL ,01 )), "SL@", 1.2, colorWhite, bkcolor= IIf(Sell,colorDarkRed,colorDarkGreen) );
AddColumn( IIf(Buy , Lotsizeb, IIf(Sell, Lotsizes,01 )), "QTY", 1.0, colorWhite, bkcolor= IIf(Sell,colorDarkRed,colorDarkGreen) );
AddColumn( IIf(Buy , Lotsizeb*BuyPrice, IIf(Sell, Lotsizes*SellPrice,01 )), "Margin", 1.0, colorWhite, bkcolor= IIf(Sell,colorDarkRed,colorDarkGreen) );


// csv file


if (IsEmpty(StaticVarGet("EntrySignal"+Name())))
{
	StaticVarSet("EntrySignal"+Name(), 1);
}




   if ((StaticVarGet("EntrySignal"+Name()) == 1) && LastValue( Buy )  )  {
		fh = fopen( "C:\\trades_buy_"+Name()+".csv", "awr"); 
		if( fh) 
		{          
		   fputs(Name()+","+Date()+","+BuyPrice+","+BuyTP+","+BuySL+","+ round(BuySL*0.9995*10)/10+","+lotSizeb, fh);
			StaticVarSet("EntrySignal"+Name() , 0); 			 
			fclose( fh );
		}
	} 

	

    
	if ((StaticVarGet("EntrySignal"+Name()) == 1) && LastValue( Sell)) {
      fh = fopen( "C:\\trades_sell_"+Name()+".csv", "awr"); 
      if( fh) 
		{         
			fputs(Name()+","+Date()+","+SellPrice+","+SellTP+","+ SellSL+","+round(SellSL*1.0005*10)/10+","+lotSizes , fh);			
			StaticVarSet("EntrySignal"+Name() , 0);
			fclose( fh );
		}
	}
 
  
  


Filter=Buy OR Sell;
 
M

mds1

New Member
#777
#777
Dear Coloumbus & Bandlab2,

Thankyou for your prompt reply's and help they are great, Mr Coloumbus sir am i correct in thinking that if Piercing is 2 diffrent candles then grazing is defined by two candles of the same colour??

Also when seeing piercing/grazing occur do you wait for the third candle to retrace into the second one slightly to gain a better entry. Am i correct in thinking the 3rd candle is the ENTRY candle?

I notice you use this trading the sensex what is your optimal time frame which yields the best results>, i ask as i am looking to try it on the ftse.

Once again Thank you so much you are a both fantastic. If you are ever visiting the UK let me know.
Regards
MDS
 
columbus

columbus

Well-Known Member
#779
#779
M

mds1

New Member
#780
#780
Thankyou for your kind reply's it is much appreciated.

Mr Columbus am i correct in thinking that Grazing could be defined as two candles of the same colour and entry for both piercing and grazing is done on the thrid candle?
Also on the third candle do you wait for a slight retrace into the second candle to achieve an optimal entry?
What time frame is this style best used oin 1min/5 min? etc. I am ask as i noted that you trade this method on the Sensex and i am looking to use it on the FTSE.

Once again thanks for all your help and if your ever visit the UK let me know.

Kind regards
MDS
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
B _bollingerbands overlay AmiBroker 0

Similar threads