Scalping strategy on Bollinger Bands and RSI

This strategy is a continuation of the idea described earlier in "Profitable scalping strategy on the yen". In this variant EUR/USD is used for trading and additional filters for position opening have been introduced.

Trading strategy settings

Currency pair: EURUSD
TimeframeM1 and M5
Indicators:
Bollinger Bands with a period of 50 and a deviation of 2 (color yellow)
- Bollinger Bands with a period of 50 and deviation 3 (color blue)
- Bollinger Bands with a period of 50 and deviation 4 (color red)
RSI indicator (8) with levels 30 and 70
- Stochastic (14, 3, 3) with levels of 20 and 80
MA (50) - central red line

Rules of scalping strategy

Sell signal occurs when price breaks up through the yellow channel and goes at least halfway to the upper blue Bollinger band. The price, we assume, rolls back to the red MA line (50), where we take a profit. It was very wise to take a profit a little earlier, as there is no 100% guarantee that the pullback will take the price to the moving average.

Adding to the rules will be a signal from the two oscillators: sell when the RSI is above the 70 level and the stochastic (almost) reached the 80 level.

Scalping strategy on Bollinger Bands and RSI
Scalping strategy on Bollinger Bands and RSI

A bargain for sale opens at a reverse signal from the indicators.

Scalping strategy on Bollinger Bands and RSI
Scalping strategy on Bollinger Bands and RSI

The author does not use stop-losses when working with this system, because (especially on the 5-minute range) almost all entries are successful. However, for rare cases it is possible to use locking.

Комментарии ( 16 )

  1. All these indicators are available in the terminal, the settings for them are available at the beginning of the strategy, it is very easy to create such a template yourself.

    A little later, in the magazine issue, presumably 72, you will be able to download both the template and the expert.

  2. I wish I could add a 3-level trawl (from the middle, yellow and blue line - each level has its own setting) and maybe a no-loss output from the middle line.

  3. The Expert Advisor has a problem. Over the past 3 days several times, after a breakdown of the blue (and even red) line, the price went not to the middle, but in the direction of this breakdown. And trading by the rules, and the Expert Advisor went into minus for a long time (as long as there was enough deposit - it is good that it was a demo). At least it was a waste of time.

    In addition, even with a return in the right direction, it is possible to go negative. The average line (and the entire chart) can go against the price and the order closing will turn out to be negative.

    A new entry - between red and blue (blue and yellow; after yellow) on a return from red (blue) can reduce the risk. Then the price almost certainly goes to the midline. And also a trawl.

  4. There is also such a problem. According to the rules we put a sell, but the price goes up. How to protect against it is not clear yet. Only stop=0 and wait for the weather? But the closing conditions are still valid and if they are higher than the order, we are out of the money.

  5. As a variant of solving the entry problem, it is possible to supplement the Expert Advisor with the trend change indicator. The entry rule has triggered, then the Expert Advisor waits for the trend change and opens a position *the change in the situation with the lines is not taken into account).

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