Bollinger Bands medium-term channel trading strategy based on two Bollinger Bands

Bollinger Bands channel trading strategy interesting because it uses only two indicators Bollinger Bandsand after the first position is opened, a grid of orders is used in case the price has gone in the wrong direction.

Input parameters

• Currency pairs: any.
• Timeframe: H4.
• Bidding time: any.
• Risk Management: After calculating the stop loss, choose this lot sizeto risk no more than 2-5% of the deposit per trade.

Installing the strategy template

• Unpack the archive with the template.
• Copy the template into the templates folder.
• Open the chart of the desired currency pair.
• Set the template with the name Bollinger Bands.

The schedule should look like this

Signals indicating the opening of a long position (buying)

• The price touched and bounced from the lower boundary of the blue Bollinger Band.
• The candlestick closed above the lower boundary of the red Bollinger Band.
• We open a buy position with a take profit of 100 pips and no stop loss.
• Every 20 points below the entry point we place pending buy orders with a Take Profit of 20 points and no Stop Loss. The size of the positions does not change.

Signals indicating the opening of a short position (sale)

• The price touched and bounced from the upper boundary of the blue Bollinger Band.
• The candlestick closed below the upper boundary of the red Bollinger Band.
• Open a sell position with a take profit of 100 pips and without stop loss.
• Every 20 pips above the entry point we place pending sell orders with a take profit of 20 pips and no stop loss. The size of the positions does not change.

The experts of fortrader.org magazine strongly recommend testing the Bollinger Bands trading strategy on historical data to select the optimal number of additional orders and the size of each position. At the same time, it is better to use stop-loss orders to avoid losing the deposit.

Download Trading Strategy Template

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