Bollinger Bands + RSI Trading Strategy tested 100 TIMES – Will this make PROFIT for you?

Published on September 2, 2021

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What if you combine Bollinger Bands Trading Strategy with the RSI strategy as a trader? Will you make more money?
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Can you make money with the RSI and Bollinger Bands trading strategy? No not with RSI and Bollinger bands separately, because I have already tested  the Bollinger bands indicator and the RSI trading strategy 100 times, they both had a profitable win rate. With a reward to risk ratio of 1.5 to 1, Bollinger bands had a win rate of approximately 55 percent, and the RSI had a win rate of approximately 49 percent. But what if we combine these two trading indicators, will the win rate go up? Well, why don’t we find out. In this video, I’m going to test the Bollinger bands RSI trading strategy 100 times, to find its approximate win rate. And subscribe to the Trading Rush Channel and ring that notification bell, because we test many different indicators 100 times to see if they work or not, and you don’t want to miss that.

In the RSI strategy that had a profitable win rate, the long entry signals were taken, when the RSI crosses above the 30 level. And short entry signals were taken when the RSI line crosses below the 70 level.

In the Bollinger Bands strategy that also had a profitable win rate, buy entry signals were taken, when a buy candlestick pattern is formed after price crossed below the lower bollinger band. And sell signals were taken when a sell candlestick pattern is formed after price crossed above the upper bollinger band. Furthermore, a 200 period moving average was used to find the direction of the long term trend.

But when you combine these two trading strategies, things become a little bit different. In the Bollinger Bands RSI strategy, a buy entry signal is at the first candle that closes above the middle bollinger band, soon after RSI was over sold. RSI value below 30 is considered to be over sold. Furthermore, a good portion of the candle has to close above the middle bollinger band, a slight touch will be considered as invalid.

Similarly, a sell entry signal is at the first candle that closes below the middle bollinger band, soon after RSI was over bought. RSI value above 70 is considered as over bought. And, a good portion of the candle has to close below the middle bollinger band.

For example, in this long setup, the RSI went oversold, then the price made a move up. Your entry is at the first candle that closes above the middle Bollinger band. You can set the stoploss below the lower bollinger band.

In this short setup, the RSI went above 70, then price made a move down. Your entry is at candle that closes below the middle bollinger band. Stoploss goes above the upper bollinger band.

Now you might be thinking, what’s the point of using the Bollinger bands with the RSI indicator? Well, some people like to combine these two indicators to filter some of the false signals. Remember, RSI on its own was a profitable strategy. So when you use it with the bollinger bands, you are filtering some of the false signals that bollinger bands gives in some conditions. Bollinger Bands on its own was also a profitable strategy, but in the bollinger bands strategy video, we used it as a trend following indicator with the help of  a 200 period moving average. When you combine the bollinger bands with the RSI indicator however, you cannot use the 200 period moving average to find the trend direction, because this strategy doesn’t give a lot of entry signals when used with a 200 period moving average. In other words, Bollinger Bands RSI strategy, is a reversal trading strategy.

We have tested most indicators on the Trading Rush channel in the direction of the trend, and because of that, many indicators performed really well. Since Bollinger Bands RSI strategy is not exactly a long term trend following strategy, will it perform any good after testing 100 times? Well, I tested it 100 times and here are the results.

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How to Avoid Macd False Signals

How to Avoid Macd False Signals, Bollinger Bands + RSI Trading Strategy tested 100 TIMES – Will this make PROFIT for you?.

Leading 3 Reasons Why Trading With Signs Is Overrated

It’s just a matter of discovering what makes the many sense to you. Heck, even the weather frequently has an effect. They do not think that reversals can be regularly traded either.

Bollinger Bands + RSI Trading Strategy tested 100 TIMES – Will this make PROFIT for you?, Explore latest explained videos about How to Avoid Macd False Signals.

How To Make Money Trading Forex?

Also validate you signal when the MACD histogram is above the 0 line; signaling up momentum. You can just envision by it’s name how effective this has actually been. Marketing based on them will cause you to lose sales.

I am specific individuals have informed you that you can make huge cash by trading foreign currencies, right? I am also ready to wager somebody has actually told you it is simple to do. Is this true?

1)Pattern. Forex is wonderful to trade because lots of currency sets trend extremely well and extremely regularly. Discovering the pattern is your first action when by hand Macd Trading. Adding a pattern sign to your everyday, hourly and 15 minute charts will assist you identify whether you ought to be going long or short with your trades.

Experience holds the key. Checking out a great deal of books on technical analysis assists to narrow the note down. You quickly zero Macd Trading signals in on the handful that keep turning up once again and once again in book after book.

Utilizing RSI we will have tools that will help us understand the currencies character such as RSI Variety, RSI Range Shifts, Momentum 1 and 2 and the 4 RSI Trading Signals. All of these methods can be utilized to learn more about a specific currency pair like it was your finest pal.

As soon as you have a system in place, you must ensure you just trade through a ECN broker, this will make your Macd Trading Crossover much more easier. Trust me on this most Forex brokers that have a dealing desk simply love new traders, due to the fact that they are uninformed of their little tricks. Another words when you win they lose, they trade versus their clients. So trade through a ECN broker only and this will make your life as a trader far more simple.

Trade “A” – Utilizing the MACD on an everyday chart, trading 1 currency pair, and whenever he notifications the lines are crossing he takes the trade. This trader will make a minimum of 25 to 50 trades by the end of the month. He will have some losers and winners, but we will offer him the advantage of the doubt and claim that he made a 250 pips for the month. I ensure you that this trader will be in the unfavorable after 3 months.

The world has emergencies simply waiting to boil over all the time. How can we as pattern traders remain one action ahead of the monetary markets? Markets which are absorbing and reacting to all these events continuously, and more notably, quickly?

How much do you wish to run the risk of per trade? How much margin are you comfy with trading on? Do you have recovery technique in case your trades take you listed below margin?

The function to this is to produce trade signals for your own individual trading style. Motion in the DI+ and the DI- will let you understand which side of the marketplace to get on. That is why securing profits is so so important.

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