Day 4 – The Bollinger Bands Strategy

Dec 12

Day 4 – The Bollinger Bands Strategy

“Finally a proper strategy!”

 O  kay, so today I am excited for the first time. Because for the first time, I have been given one-to-one tuition in a real strategy – The Bollinger Bands Strategy

But before I tell you what it is and how to find it yourself, I can say that TradeRush have come through for me today by getting one of their strategists to contact me for my own little one-to-one session on the Bollinger Strategy. Although I’m still waiting for that call from Joe!

Before I can tell you about the Bollinger Bands Strategy, I think it would be useful for you to know the best places on the net to look at some live charts that will help you find it and also a website that has incredibly useful information.


Netdania has a wealth of incredible up-to-date information, but it’s best loved for its live finance charts which can be customised in pretty much every way imaginable. Here are step-by-step instructions on how to access these powerful features.

  1. Preferably using a Google Chrome browser, go to
  2. Click on the ‘Charts’ tab – You need latest version of Java for the charts to load
  3. You can detach the chart from the web page, which I have found most useful. Simply click on ‘View’ and select ‘Detach Chart’ – The charts open up in their new window.
  4. You can minimise or maximise the charts as you wish for a better view.
  5. Choose the currency you want, say GBP/JPY and most importantly set the timescale to 10 minutes.
  6. Now we need to draw on the chart. Select ‘Studies’ and in the search bar, choose ‘Bollinger Bands’
  7. From the same menu, ‘Studies,’ you also want to add ‘moving average’ and select a period of 5
  8. If you chose the default settings, you will now see a blue upper line and a red lower line, these are the support and resistance boundaries of the Bollinger Bands.
  9. What you need to do is keep an eye on these charts, look for non-volatile movement where the upper and lower bands are relatively tight together, the bands are close together and horizontal.
  10. Now to find the signal to PUT, you need to see when a blue candle cuts into and pierces the upper blue line AND then to find a red candle immediately following in the next 10 minute candle. That’s a signal to place a PUT trade and there will likely follow a down trend within a 15 to 45 minute time bracket.
  11. To find the signal to CALL, you need to find when a red candle cuts into a pierces the lower red line AND then to find a blue candle immediately following in the next 10 minute candle. That’s a signal to place a CALL trade where there will follow an up-trend within the next 15 to 45 minute time bracket.

The trick is to be patient to help you find the trend change. Watch out though, it isn’t always right and that red candle can change into a blue one within 10 minutes! As such, exact entry may be difficult to judge, especially if the price is already half-way down or up in the direction you are also placing your trade!

To talk too much in depth about Bollinger Bands Strategy is outside the scope of my post, but since I was introduced to it today and I loved being shown it so much, I wanted to share it. For more indepth detail, I recommend the good old wiki! (Lots of info there!)


Other great websites that I really recommend as powerful tools are as follows: (an incredible site for detailing current (live) analysis – highly recommended) (Also highly recommended as the direction of the price is highly influenced by economic daily announcements)


Please don’t look at today’s results below, see the loss and attribute it to the Bollinger Bands Strategy as described above. The loss is to do with something completely different which I also tried today and will discuss in depth tomorrow!

 Brokers tried so far:;; Options-World

Strategies tried today: Bollinger Bands Strategy

Profits made today (Day Four): -£339.79 (loss)

Cumulative total profits: -£1189.98 (loss)

What went wrong: (more tomorrow)



  1. Jonathan /

    I don’t seem to get the message being tried to passed across.
    Is it that the bollinger bands strategy is fine or opposite (as regards the loss)?
    Also did trade rush analyst call up?

  2. admin /

    When I started binary options many moons ago, my charts eventually became cluttered with every indicator you could imagine in my attempts to become consistently profitable with BO.

    Over time, the indicators I used became less and less. Now, as a professional BO trader, Bollinger Bands are the only indicator I have left on my charts, so that will tell you rather a lot about how effective they are.

    • Jonathan /

      But can the bollinger band strategy be used on meta trader 4? or I have to use netdania chart?
      Also, you seem to mention here on this post that the bollinger method made you lose.

      • admin /

        You will be able to set up Bollinger Bands (BB) on MT4 or netdania.
        I think what you might be referring to is my use of BB in conjunction with a different strategy which didn’t work out for me then. There are many different ways to apply BB strategies.

        Remember that trading is not an exact science. I think it’s impossible to ever find a strategy that will ensure continued success if you follow a specific method in a specific way. In my use of BB now, I never use it as a signal to shoot off a trade – I merely use it as a guide to *help* me identify the most probable trades. I’m a reversal strategist, so I only take my trades on small retraces when they happen. Identifying when those retraces will occur is not easy, but I’ve learnt how to do it so that I’m correct over 65% of the time over a sample of 5000+ trades. How I do that is not an exact science, each time I see the potential for a retrace (and trade on that), the parameters that cause me to believe it will be different every time.

        So… every time a candle pokes its head over a Bollinger Band will NOT determine if I take the trade or not, but it helps me along the way. But I must add to that, the volume of the candle, what other candles are doing around it, do I see a pattern?, what time of day is it, what conditions are in the marketplace right now, is it near S & R or fib points?, etc. etc. Processing all the info in a split second is what befits a person who has stared at these charts for months and months and can finally recognise what generally will happen next… at least over 65% of the time anyway! (which is good enough to be successful).

        I hope this helps!

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