Showing posts with label 5min Bollinger breakout system. Show all posts
Showing posts with label 5min Bollinger breakout system. Show all posts

Saturday, 26 July 2008

5min Bollinger breakout system

Trade EUR/USD 5 minute chart.
Indicators used: Upper Bollinger Band (period 14, 2 standard deviations, low price), Lower Bollinger Band (period 14, 2 standard deviations, high price), DeMarker (period 14), ADX (period 14, typical price), ATR (4 hour chart, period 100), EMA (period 14, typical price)

Open long when price is within 5 pips of upper band, demarker is greater than .7 or less than .3, and ADX is at least 40.
Open short when price is within 5 pips of lower band, demarker is greater than .7 or less than .3, and ADX is at least 40.
20 pip take profit, stop loss is large at 10 * ATR.

Also:
Close long when we are profitable and the price drops below the EMA.
Close short when we are profitable and the price goes above the EMA.