Trend Trading Strategy DZ TDI RSI with Bollinger Bands
Trend Trading Strategy DZ TDI RSI with Bollinger Bands is interesting because it has two sets of rules for entering the market, which differ in the degree of risk:
- The first option gives more trading signals, but increases the frequency of erroneous entries.
- the second version is more accurate - the number of inputs is reduced, but they became more accurate.
Input parameters
- Currency pairs: any
- Timeframe: H1 and older
- Bidding time: any
- Risk management: after calculating the stop-loss, choose this lot sizeto risk no more than 2-5% of the deposit per transaction
Used indicators
- Bollinger Bands 20 period (deviation 4, median price HL/2)
- Bollinger Bands 20 period (deviation 1.5)
- DZ TDI RSI (Polycromatic Dynamoic Zone)
Setting up the price chart
- Unpack the archive
- Copy the template into the templates folder
- Copy the indicators to the folder MQL4 -> indicators
- Restarting the terminal
- Open the chart of the desired currency pair
- Install a template named TDIBB
The schedule should look like this:
Signals indicating the opening of a long position
First option:
- price broke through the upper boundary Bollinger Bands with a deviation of 1.5;
- DZ TDI RSI indicator line has crossed the 50 level from bottom to top.
Second option:
- the price pushed away from the lower boundary of the Bollinger Band with a deviation of 4;
- bar (candle) closed above the upper boundary of the Bollinger Bands with a deviation of 1.5;
- DZ TDI RSI indicator line has crossed the 50 level from bottom to top.
Signals indicating the opening of a short position
First option:
- the price broke through the lower boundary of the Bollinger Bands with a deviation of 1.5;
- DZ TDI RSI indicator line has crossed the 50 level from top to bottom.
Second option:
- the price pushed away from the upper boundary of the Bollinger Band with a deviation of 4;
- bar (candle) closed below the lower boundary of the Bollinger Bands with a deviation of 1.5;
- DZ TDI RSI indicator line has crossed the 50 level from top to bottom.
Setting Stop Loss and Take Profit Orders
For the first option:
- stop loss is set near the middle line of the Bollinger Bands;
- Take Profit is set according to the trend, depending on the currency pair and timeframe. It is possible to close a position when the DZ TDI RSI indicator line crosses the 50 level in the opposite direction.
For the second option:
- stop-loss is set at a distance of 15-25 pips from the borders of the Bollinger Band (1.5);
- Take Profit is set by the trend, depending on the currency pair and timeframe. It is possible to close a position when the line of the DZ TDI RSI indicator crosses the 50 level in the opposite direction.
Before using DZ TDI RSI with Bollinger Bands trend trading strategy If you have a real deposit, be sure to test it on a demo account.
Download DZ TDI RSI with Bollinger Bands Strategy Template and Indicators