How to Turn your Bollinger Bands Indicator into a Killer Strategy

How to Turn your Bollinger Bands Indicator into a Killer Strategy

In this article, we will briefly describe a specific way of improving your Bollinger Bands Indicator into a professional tool. Many technical indicator are good when they are used properly. However, 99.9% of time, technical indicator will not provide you how much uncertainty you are betting your money with. Especially, when you are running a serious amount of money, this is frustrating. You want to avoid any situation just blindly betting your money on the direction. We made it through possible to help you relive all your worries behind this trading game.

Let us take some example.

We know often, when price move outside Bollinger bands, it will provide us some useful timing for entry. You might add some extra tools around with your strategy. However, does not matter, how many additional tools you are adding, you will be still blind how much uncertainty you are having with your entry.

Just add Fractal pattern Scanner in your chart. Measure the specific probability for your entry. Since Bollinger Bands are price based strategy, we use time based probability. Hence, we will need to read out the time probability before your trading. In this example, we need to read the probability in X axis because it is the time probability. In our example, in our Bollinger Bands entry, we have the reading of 92% probability. This means that your entry could be turning point 9 out of 10 chances. You would be much better at allocating your capital for the particular entries from now on.

Measuring probability is  one ultimate way of managing your risk. Trading with understanding your risk is one single most important practice to survive  in the Financial market for a long time.

We hope you enjoyed this simple article. The trading logic with Fractal Pattern Scanner is simple. When you are using Price based strategy like Bollinger Bands, Harmonic Pattern, X3 Patterns, Elliott Wave Patterns, Oscillators, you measure the time probability to measure your risk. When you are using Time based strategy like Fibonacci Time, Gann’s Cycle and Planetary cycle, etc, you use Price probability to measure your risk. Then act accordingly to manage your risk. For your information, this is the different risk from your stop loss. Stop loss is not the risk of your strategy. We are talking about the risk of your strategy.

Probability is not bullet proof but it is important because it provide you the precise explaining on what you are doing with your strategy at the moment.

Below is the landing page for Fractal Pattern Scanner.

https://www.mql5.com/en/market/product/49170

https://www.mql5.com/en/market/product/49169

https://algotrading-investment.com/portfolio-item/fractal-pattern-scanner/

 

How to turn Bollinger Bands Indicator into a Killer Strategy

 

 

 

 

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: