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Trading Bollinger Bands – but ignore the middle Band

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Marc

Subscriber, bbp_participant, community, 6 replies.

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7 years ago #111655

Hi,

I am Marc and this is my first post in this community. I am 27 years old (or young 🙂 ) and I come from Germany.
My english is not on its best so I really hope that everyone can understand my question.

I would like to trade Bollinger Bands but I can not find a way to tell the Wizzard ‘ Please only trade if the highest or the lowest Band is touched and ignore the middle Band.

At the moment I tried the following but the EA trades every Band.

Go Long

If: market position is flat
And

Ask crosses below BollingerBand (20,0,2, Close, Lower) [1]

Then:

Enter at market.

Seccond tab is

Go short:

If market position is flat
End

Ask crosses above BollingerBand(20,0,2, Close, Upper) [1]

 

then
 

Enter at market

Could please someone tell me what can I do to Short if the market crosses above the highest Band and go long if the market crosses below the lowest Band and just ignore the middle Band.

Thank you very Much

 

Marc

 

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Mark Fric

Administrator, sq-ultimate, 3 replies.

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7 years ago #122845

Hi Marc,

 

I answered to you in the email, I’ll repeat my answerhere.

 

The only “problem” in your rules is that Ask/Bid don’t have history, it is current price. So it shouldn’t be used in cross above/below conditions, 

because the EA has no way to find what was the previous value of Ask to check if it crossed above some level.

 

Instead of using cross above/below you can use two conditions like this:

To Short if the market crosses above the highest Band:
IF (Close[1] < BollingerBand (20,0,2, Close, Upper) [1]
and Ask > BollingerBand (20,0,2, Close, Upper) [1]

this condition will be valid when close of th eprevious candle is belov BB and Ask (current price) gets above BB.

To Long if the market crosses above the lowest Band:
IF (Close[1] > BollingerBand (20,0,2, Close, Lower) [1]
and Ask < BollingerBand (20,0,2, Close, Lower) [1]

 

 

You don’t need to worry about middle band, you don’t use it in your rules anywhere.

 

Mark

Mark
StrategyQuant architect

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ryanbrignac9764

Subscriber, bbp_participant, community, 89 replies.

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6 years ago #128718

Mark,

  How can i add the middle band? One of my strategies involves a moving average to be between middle and top band or middle and lower band. But i don’t know how to tell it between middle and bottom or middle and top?

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Threshold

Customer, bbp_participant, community, 715 replies.

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6 years ago #128720

Mark,

  How can i add the middle band? One of my strategies involves a moving average to be between middle and top band or middle and lower band. But i don’t know how to tell it between middle and bottom or middle and top?

 

The middle bollinger band is a simple moving average of whatever period you have chose.
SO a middle bollinger band(20) is a 20simple moving average.

You want to see if market is between that and the upper? Easy.

Lets use a 5EMA as our example to find if its less than the upper band but greater than the middle band.

IF
5EMA< Bollingerband(20, upper)
and
5EMA>Simple Moving Average (20)

THEN…

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