Bollinger Bands also Work as a Mean Reversion Indicator when used like this

Рет қаралды 6,240

Күн бұрын

In this video I demonstrate how to use Bollinger Bands as a Mean Reversion Indicator.
This trading strategy works on the 60 minute chart of USD / CAD Forex pair.
All testing is done with Multicharts using data from Oanda. Tests are done using 1 full lot.
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I am not a financial advisor and I am not offering you financial advice. I am not regulated in any way. The purpose of the content I provide is for educational purposes only.
Any information you receive is based on my own knowledge and experience in the financial markets and how you act on the information provided is your own responsibility.
I cannot be held responsible for any losses you may incur as a result of ideas taken from my content provided.

Пікірлер: 22

@paulmarshall7794 3 жыл бұрын

ASX200 30 minute chart - BB set at 21 and 2 - price swings about the 144 EMA all day everyday. Mean reversion is very reliable (in my experience).

@mhsfootball2006 Жыл бұрын

Thanks! I’ve been searching all around for someone to show actual rules build up. And actual Backtesting results! I very much appreciate this! Have you by chance looked at having a target at the Mavg instead of always long/short?

@jamespaul4618 Жыл бұрын

0:10 use filters to increase the probability of success. Only add them if they add value to the analysis. 4:25 chart example and great explanation on how to use the strategy. 5:30 equity curve. No filters 6:20 adding filters. If market is making HH HL then look for buys. If LL LH LL LH then sell. This is a TREND FILTER. 8:00 FILTER #2. Using specific times of the days session times and KZ specific times. 10:18 filters should produce higher value outcomes. 12:55 Filter #3. Good days vs bad days? Is there data when you should not trade? Friday!! 14:15 Filter #4 stop loss.

@John67kenn 3 жыл бұрын

Thank you for this in depth video! Could you maybe make a follow up video to the “inside bar“- strategy that you‘ve showed us recently? Would love to see that. Best regards Tom!

@TheTransparentTrader 3 жыл бұрын

What would you like to see in the follow up?

@John67kenn 3 жыл бұрын

@@TheTransparentTrader a stop loss placement, since it’s a robust strategy but in the last video you didn’t use a one so it would be interesting to see.

@tonyt3067 2 жыл бұрын

Thanks for sharing this Jarrod. You really make a point of the 'less is more' approach to optimizing inputs. I am seeing more and more how important that is. I think when one starts out on the journey of algorithmic trading, one tends to try and cover every possible outcome, simply because we can, in theory, with coding. This is natural I think and is classic over-fitting, and needs to be unlearned. We need to 'let the markets be the markets' and accept that a good equity curve is never a 45 degree angle from left to right. As I work on strategies now, I remember what you say about over-fitting / curve fitting. It helps a lot. Thanks again!

@TheTransparentTrader 2 жыл бұрын

You're right Tony!

@dipaul9243 2 жыл бұрын

man, your channel is gem, just wanna say thank you

@elliotttradespatternup5435 3 жыл бұрын

I really like your channel, the way u break it down and all efforts to prove effectiveness 💪🏿🏁

@hermanspiteri9929 3 жыл бұрын

Great lessons as always. Thanks for sharing! :)

@fxsurgeon1 2 жыл бұрын

In its basic form, I couldn't get a positive curve on MT4 using the exact same rules.

@samarpannawlakha2311 Жыл бұрын

Whats the ROI / Equity curve looks like on an annualized basis? Correct me if I got this incorrectly, but do we get ~80% return in 17yrs?

@keejoseph3145 2 жыл бұрын

In your example you said to buy when price close out of the oversold area. Did you see price when down after your buy and you would have stop losses.

@maximosh 3 жыл бұрын

Try AUDJPY Hourly chart using a single indicator ADX period 28, level>=10 SL=190 TP=230. Nice equity for the last 12 months. Probably needs time optimization. Nice video Jarrod. These Bollinger results seem better than the Donchian 40,20 setup for USDCAD.

@TheTransparentTrader 3 жыл бұрын

What's the equity curve like looking a little further back?

@maximosh 3 жыл бұрын

I'll get the data for AUDJPY and check. This pair seems to trend as well as GBPJPY. These system parameters may not be great longer term. I know ADX can result in some robust systems though. Direction can be determined from DX+- and supported by a few previous rising bars of ADX.