In the world of financial trading, Bollinger Bands are one of the most popular indicators. You can find many ways to trade around it on the forums or websites.
But to build yourself a simple and effective trading strategy with that indicator is not simple. So in this article, I will introduce you to a very unique and highly secure trading strategy around Bollinger Bands.
Review the Bollinger Bands trading strategy with 2 different time frames
If you want to know in detail how to enter an order, please review the article: Bollinger Bands trading strategy with 2 time frames at IQ Option.
Order 1: The price of the EUR/USD currency pair was out of the lower band in 2 time frames 30s and 1 minute. On the 30s chart, there was a strong bearish candle followed by a bullish candle back into the band. All conditions have been met. Opened a HIGHER trade with 1 minute expiration time.
Order 2: The price of EUR/USD broke out of the upper band in 2 time frames. At the same time, on the 30s chart, there was a strong bullish Marubozu candlestick followed by a Gravestone Doji candlestick turning into the band. Opened a LOWER order at that moment.
Order 3: The price of EUR/USD has fallen out of the lower band of the 30s and 1 minute time frames. Looking at the 30s chart, there was a strong bearish candle. Following it is the green candlestick that was returning to the bands. It was safe to open a HIGHER order at that point.
Order 4: Opened a LOWER order when the price in the 2 time frames was out of the upper band. And the price in the 30s candlestick chart showed signs of returning to the band.
Order 5: The price of the EUR/USD broke out of the upper band in the 2 time frames. At the same time, the 30s chart showed signs of returning to the band with the Gravestone Doji candlestick. Opened a LOWER order safely.
How to increase the winning rate with this trading strategy
That’s a question everyone wants to find an answer to. No one bets their money where the risk is higher than the odds of winning. So I will share my experience to increase the win rate of a trade as follows:
- Satisfy the conditions of the strategy.
- Capital management in accordance with the trading strategy.
- Psychological stability before trading.
If you meet the above 3 things, then I am sure your order has a very high win rate. For me, options are a game of patience and discipline. The victory belongs to those who know how to adhere to the principles that they have set out earlier. If you are in a hurry when the price has not met the conditions to open an order, it is likely that you will lose.
And a bad capital management strategy makes it easier than ever to lose money. Or being dominated by emotions during trading also makes the account easy to burn. So prepare well before trading!
A good investor will trade time for profit. And a bad trader will exchange money to satisfy his “gambling” pleasure.
It is not possible to become a successful trader in a short time. You need to experience, draw lessons and avoid losses. If you survive long enough in this market, the profits will find you. Don’t be too impatient in finding profits and then fall into a losing spiral.
First you need to use the Demo account to practice trading strategies, capital management and psychology when entering orders. If the account has been consistently profitable for several weeks in a row, that’s when you think about going to real trade.
All methods work their best when you know how to follow the rules. Don’t waste your time searching for the “holy grail”. Understanding your trading method is the only way to make a profit in the long run.