Scalping Bollinger Bands Strategy

Scalping bollinger bands strategy example

Scalping Bollinger Bands Strategy is good for quick profits with scalping on 5 or 15min timeframe.

  • TimeFrame: 5min or 15min
  • Symbol: EURUSD
  • Risk: MAX 1% of account equity per order
  • Indicators:
    • Bollinger Bands (20, 0, 2)
    • Stochastic Oscillator (5, 3, 3)
    • Moving Average (200 EMA)

 

Scalping Bollinger Bands Strategy Overview:

First in order to use Scalping Bollinger Bands Strategy you need to setup your charts to include the Bollinger Bands (20, 0, 2), Stochastic Oscillator (5, 3, 3) and Moving Average (200 EMA). Or you can download the template below which looks like same as the screen shoot.

We will be Entering buy/sell based on Moving Average. If PA is above Moving Average then we will enter ONLY BUY orders. If PA is below Moving Average then we will enter ONLY SELL orders. Second rule is that Stochastic Oscillator needs to be above 80 for ONLY BUY orders and below 20 for ONLY SELL orders. Last rule to note is that we will be entering on CANDLE close. If candle closes outside Bollinger Bands on the upper band we will enter BUY ORDER only! If candle closes outside Bollinger Bands on the lower band we will enter SELL ORDER only!

 

Scalping Bollinger Bands Strategy Entry rules:

  • Candle closes ABOVE (BUY only) or BELOW (SELL only) Bollinger Bands indicator band
  • Stochastic Oscillator indicator needs to be in overbought (above 80) or oversold (below 20) position
  • PA must be above Moving Average for BUY only or Blow Moving Average for SELL only

Once all three points are meet you can enter BUY or SELL position. You should not risk more then 1% of your account equity per trade. Once order is placed you should place your SL below last swing low / swing high or below opposite side of the Bollinger Band or below Moving Average. Recommended TP is as soon as you hit 10 pips or wait for when PA reaches middle of the Bollinger Band. Once PA reaches 4 pips in positive make sure you set your BE (Brake Even) so that even PA reverses you wont be in loss.

Please note:

  • DO NOT Trade at least 30 minutes before major NEWS is scheduled!
  • If there is a brake in Bollinger Bands BUT Stochastic Oscillator is not in overbought / oversold position IGNORE all next signals until PA moves back to center of Bollinger Bands indicator
  • DO NOT trade If PA crosses EMA and closes outside of Bollinger Bands indicator (you then need to wait until PA gets back to center of Bollinger Bands indicator before placing another order
  • DO NOT trade if PA closes outside of Bollinger Bands in opposite direction of trend

 

Scalping Bollinger Bands Strategy Exit rules:

  • Candle hits 10 PIPS in positive
  • Candle hits middle line of Bollinger Bands indicator
  • When you think that price will reverse and you are in profit better exit the trade then let it drop down you are Scalping after all!

Scalping Bollinger Bands Strategy Template

Download 1.24 KB 3139 downloads
File
bollingerbands-strategy.tpl

P4L CandleTime.mq4

Download 16.48 KB 15105 downloads
File
P4L CandleTime.mq4

How to install Bollinger Bands Strategy Template in MetaTrader 4 / MT4:

  1. Download/Copy/Save the TPL file into your C:\Program Files\MetaTrader 4\templates folder (or change the folder to your installation sometimes forex broker name)
  2. Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
  3. Open the Template with Charts/Template
  4. Locate the Template which you have just downloaded into the folder stated in Step 1
  5. TADA and your done!

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3 Responses to Scalping Bollinger Bands Strategy

  1. Employment Agency April 28, 2014 at 08:04 #

    Scalping Bollinger Bands Strategy is very good strategy and its very useful.The rules that are mentioned is very neat about the Scalping Bollinger Bands Strategy .

  2. Steven May 24, 2014 at 16:12 #

    What does PA stand for?
    Where should I set the stop loss?
    Thanks.

    • admin February 21, 2015 at 13:17 #

      PA stands for Price Action

      Stop Loss should be below 200 EMA

      hope this helps

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