Bollinger Bands and Commodity Channel Index
Here goes another one, I'll try to make it as infographish as possible.
Periodicity: Diary (1d)
Studies:
Moving average(5) is the red line you'll see below, in the CCI
Strategy:
Buy - When the price touches the lower Bollinger Band, wait at least 2 days until the CCI(72) crosses the MA(5) up.
Sell - When the price touches the upper Bollinger Band, wait at least 2 days until the CCI(72) crosses the MA(5) down.
Stop loss Buy- On the low of the entry candle(maybe 1% more).
Stop loss Sell- On the high of the entry candle(maybe 1% more).
TakeProfit- On the first day you finish in profit.
Entry Order Buy- When the price breaks the high of the entry candle.
Entry Order Sell- When the price breaks the low of the entry candle.
Searching for a nice Bollinger Band amplitude, will give you a higher chance at a bigger profit.
Pros
high win rate trading setup. (at least where I backtested it, eur/usd back to 2015)
Can be used against the trend
Cons
Long stops and many times short Tp's. Ways to work around this are, not to use leverage and simple don't enter signals with huge stops.
Bad setup for shorter time frames.