M30 BB thru FB plus Rat Reversal

trading strategies and money management discussion, code, results

Moderator: moderators

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

M30 BB thru FB plus Rat Reversal

Postby trueblueTEX » Fri Oct 15, 2010 3:54 pm

I was reading something on FF, yesterday about Bollinger Bands and extreme reversals. I've never looked at BB's before, EVER. While I was looking at some guys chart that he posted on the GU M30, I decided to look at it on my demo account and see if I could reproduce what he was showing.

Needing a template, I just grabbed the one I use for the Rat Zone which includes FB's on it. I didn't know what settings for BB the guy used so I just put the default BB on to see my chart looked like his.

Then I noticed something that may be interesting or it may just be BS.

Completely ignoring the 2 outside lines of the BB and ONLY looking at the centerline:

1) when the BB centerline pierces the 2 FB MA's from below the FB's to above them, the next Green Rat reversal is usually good for a few pips.

2) when the BB centerline pierces the 2 FB MA's from above the FB's to below them, the next Red Rat reversal is usually good for a few pips.

The caveats seem to be the following:

1) M30 only seemed to 'work'
2) If the BB centerline and the FB's are "too flat", stay out of the next reversal setup and wait for another "piercing."
3) I've only looked at GU and EU, and only briefly at that.


Why do I bring this up?

Well, I figure that a Real Good Programmer (ahemm, oh, "Hi, Avery!!") could easily code an indicator to catch the piercing and to give an alarm when the first Green candle completes (or is a minute away from completing since this is for M30) for the piercing from below to above (Red candle alarm for the other piercing) and then a trader could sit down and determine if he wants to trade.

This may be pure BS and not worth anybody's time or it might be something useful; I don't know. If some of you guys want to look at it, maybe we can determine which it is.

I'll post a couple of screenshots and the TPL that I whipped up (meager, though it is) a little later.

I need to mark up a couple of screen shots and that's not something that I do very often plus I'll have to do that intermixed with work.

I started typing this about an hour ago and was interupted by work. I could have just made 5+ pips on both EU and GU!!

Remember, this could be something OR nothing. I need y'all to help me figure that out ;-)

Thanks!
TEX
Last edited by trueblueTEX on Fri Oct 15, 2010 9:28 pm, edited 1 time in total.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Fri Oct 15, 2010 3:58 pm

Here are the non-marked up charts for the EU and GU trades that I mentioned in the previous post.


User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Fri Oct 15, 2010 4:00 pm

Hmmmm, couldn't post both pics at the same time. Here's the EU one.
Attachments
BB FB GR on EU.PNG
BB FB GR on EU.PNG (62.12 KiB) Viewed 529 times

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Fri Oct 15, 2010 4:26 pm

Ok, here's one that is a bit marked up.


pika
rank: 50+ posts
rank: 50+ posts
Posts: 74
Joined: Tue Sep 21, 2010 5:00 pm
Reputation: 0
Gender: None specified

Re: M30 BB thru FB plus Rat Reversal

Postby pika » Fri Oct 15, 2010 4:58 pm

trueblueTEX wrote:Completely ignoring the 2 outside lines of the BB and ONLY looking at the centerline:

The centre line is actually the Simple Moving Average line, so if you want to ignore the 2 outside lines of the BB, it is better to just use a SMA line instead to avoid cluttering of your chart.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Fri Oct 15, 2010 5:37 pm

I bet TRO is going to give me a "squiggly line " lecture. :-)

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Re: M30 BB thru FB plus Rat Reversal

Postby trueblueTEX » Fri Oct 15, 2010 6:00 pm

pika wrote:
trueblueTEX wrote:Completely ignoring the 2 outside lines of the BB and ONLY looking at the centerline:

The centre line is actually the Simple Moving Average line, so if you want to ignore the 2 outside lines of the BB, it is better to just use a SMA line instead to avoid cluttering of your chart.


Hey pika

showing my ignorance, what SMA settings equate to the centerline of a Bollenger Band?

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Fri Oct 15, 2010 7:10 pm

Here is the simple TPL I created.
Attachments
fb_bb_rat 30min.tpl
(59.72 KiB) Downloaded 14 times

User avatar
TygerKrane
rank: 1000+ posts
rank: 1000+ posts
Posts: 1404
Joined: Mon Jan 25, 2010 3:36 pm
Reputation: 2
Location: Long Island, NY
Gender: Male

Re: M30 BB thru FB plus Rat Reversal

Postby TygerKrane » Fri Oct 15, 2010 9:10 pm

trueblueTEX wrote:Hey pika

showing my ignorance, what SMA settings equate to the centerline of a Bollenger Band?


Bollinger Band settings = (SMA, #of standard deviations)

Without going in your template, I would assume your BB settings are (20,2)

So "20" would be your SMA setting.

click here wrote:1) when the BB centerline pierces the 2 FB MA's from below the FB's to above them, the next Green Rat reversal is always good for a few pips.

2) when the BB centerline pierces the 2 FB MA's from above the FB's to below them, the next Red Rat reversal is always good for a few pips.

In making your observations/discoveries, be careful of using the word "always".
If you "always" knew when you could absolutely get even just 2pips a day, one could kamikaze their leverage and double their account every week... (well, I guess it would take a little longer now with 50:1)


But keep that brain going and generating ideas!!,
~Krane

**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

User avatar
trueblueTEX
rank: 500+ posts
rank: 500+ posts
Posts: 532
Joined: Mon Apr 12, 2010 4:38 pm
Reputation: 0
Gender: None specified

Postby trueblueTEX » Fri Oct 15, 2010 9:27 pm

You are of course VERY correct. I should have said "usually" and not "always".

I fooled around with BB and FB and realized that what I was looking at was a 20 SMA and 5 EMA. The other EMA in the FB indicator doesn't appear to be that important.

I will edit my original post.


-------------

I am SO gonna get a "squiggly line" lecture!!! :oops:

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “strategy trading & money management”