152#Bollinger Band Scalping Trading system

Submit by Joy 22 (Written by Max Platel) 11/12/2012

 

 

Chart Setup

Preferred Currency Pairs: EUR/USD, GBP/USD and GBP/JPY
Preferred Trading Sessions: EUR and US
Timeframe: 
5 Min
Indicators: 
Bollinger Bands (default settings)

Trading Example

 Bollinger Band Scalping Trading Rules

A. Rules For Long Trades

1) Bollinger Bands must slope up.
2) Go long when the price touches the middle BB band from above.
3) Set 
stop loss at the lower band or max 15 pips (whatever comes first).
4) Take profit at the upper band.

B. Rules For Short Trades

1) Bollinger Bands must slope down.
2) Go short when the price touches the middle BB band from below.
3) Set stop loss at the upper band or max 15 pips (whatever comes first).
4) Take profit at the lower band.

EURO/USD Trades Explained (see picture above)

Trade 1: Bands slope up >> long at 1.3981 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the upper band 1.3999 for 18 pips profit.

Trade 2: Bands slope down >> short at 1.3986 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3971 for 15 pips profit.

Trade 3: Bands slope down >> short at 1.3982 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3964 for 18 pips profit.

 


Trade 4: Bands slope down >> short at 1.3975 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3958 for 17 pips profit.

 

Trade 5: Bands slope down >> short at 1.3965 (middle band).
Stop loss at the lower band or max 15 pips.
Closed at the lower band 1.3950 for 15 pips profit.

Trade 6: Bands slope down >> short at 1.3941 (middle band).

Stop loss at the lower band or max 15 pips.
Stopped out the at upper band 1.3950 for 9 pips loss.

Total Trading Results:

+74 pips in 6 hours of scalping the EUR/USD 5 min chart


 

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