1. Overview
The Double Bollinger Band Strategy is a powerful tool that uses two sets of Bollinger Bands to refine your entry and exit points in the forex market.
This strategy focuses on placing Buy (or Sell) trades when the price crosses above (or below) the 3σ (3 standard deviations). It also takes into account the 2σ (2 standard deviations) level of the Bollinger Bands to inform trading decisions.
Default Parameters:
- 2σ Bollinger Bands (20, 2): This includes a simple moving average over 20 periods and 2 standard deviations.
- 3σ Bollinger Bands (20, 3): This also uses a 20-period simple moving average but with 3 standard deviations.
Input Parameters:
2. Long Entry
To open a Buy order, ensure these two conditions are met:
- Condition 1: The Ask price crosses above the upper 3σ Bollinger Band (BB3UP).
- Condition 2: If Condition 1 is true, verify that the current price is within the range of the upper 2σ Bollinger Band (BB2UP) and the lower 2σ Bollinger Band (BB2LO).
| 3. Sell Entry | ||||||||||||||||
| To open a Sell order, ensure these two conditions are met: | ||||||||||||||||
| Condition 1: The Bid price crosses below the lower 3σ Bollinger Band (BB3LO). | ||||||||||||||||
| Condition 2: If Condition 1 is true, ensure the current price is within the range of the lower 2σ Bollinger Band (BB2LO) and the upper 2σ Bollinger Band (BB2UP). | ||||||||||||||||
| 4. Exit Orders | |||||||
| Utilize OCO (One Cancels Other) orders to set both stop-loss and take-profit at N pips. | |||||||
| ※N: Set this parameter according to your strategy. | |||||||
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