Bollinger Bands Coding

• 08/20/2016 at 4:02 PM #11955
  smurfy

  Hi all,

  just want to check how do I get the Middle Line for BB?

  BBPERIOD = 20 STDDEV = 2 AVG = Average[BBPERIOD](close) BBUPPER = AVG + (Std[BBPERIOD] * STDDEV) // Upper Bollinger Value BBLOWER = AVG - (Std[BBPERIOD] * STDDEV) // Lower Bollinger Value

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  BBPERIOD = 20   STDDEV = 2   AVG = Average[BBPERIOD](close) BBUPPER = AVG + (Std[BBPERIOD] * STDDEV) // Upper Bollinger Value BBLOWER = AVG - (Std[BBPERIOD] * STDDEV) // Lower Bollinger Value

   

   

  I tried to calculate but the value I getting is so much different from the one on the Chart.

  Understanding that IG uses 10.2 PRT (WTH!!! already called them to upgrade), but is there a way now for me to Test my coding results to see what is the value calculated so that I can match what I see on the Chart?

  Thanks all!

  

  smurfy

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  08/20/2016 at 4:05 PM #11956
  Nicolas

  Hi, bollinger bands center line is a “simple moving average” of 20 periods, as you already calculated it with your AVG variable.

   

  

  Nicolas

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  08/20/2016 at 4:10 PM #11958
  smurfy

  Hi Nicolas,

  Great, thanks for your reply. Do you think using BB, RSI and MACD can identify Breakouts and take some profits from there?

  Also, I keep thinking on a scenario on how to code it.

  For example, if this strategy identifies a breakout, and enter a position to either buy/sell along with the breakout:

  Q: how do I determine the Take Profits portion? Well Stop Loss can be my previous bar highest or lowest for the time being and later can add in some risk management portion.

  Q: how do I “tell” my Bot not to repeat the same trend again as I already took profits. Maybe the trend is still there, but I already exit with some profits….

  Thanks!

   

  

  smurfy

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  08/20/2016 at 6:08 PM #11969
  Nicolas

  About the take profit, you should focus on keeping the best risk/reward ration the market can offer. In my own experience, I encourage you to cut quickly your loss and let your profit running.

  For your second question, it depends mainly on how the conditions for your strategy to initiate a trade are met.

  

  Nicolas

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