Does bollinger bands trading strategy even work? Are online trading guru’s telling you false information? I have wasted years testing every trading strategy out there, before i found the right one, that worked! I’ve created this channel to expose every strategy, and show their real probabilities, so you don’t have to waste your precious time like i did! I’m not here to sell any kind of online course, I’m just here to help you in your Stock trading and Forex trading career. If you find this video helpful, consider subscribing to support the channel! In this video i will back-test 100 times, a very famous trading strategy called the bollinger bands strategy. Yes you heard it right. testing 100 times takes time, and will most likely prove, if you should risk your hard earned money, using this strategy!

For those who are new to trading, this is what bollinger bands indicator looks like. By default bollinger bands will come with a moving average in the middle, and two bands around it, called the upper band and the lower band. In simple words, this is what bollinger bands mean. If you plot this indicator on a trading chart, the middle line will indicate the average price of the stock, and price will most likely stay inside the bollinger bands.
Strategy to take trade using this indicator is really simple. If the price crosses the upper bollinger band, the market is considered as over extended, and we should look to sell, since the price can move towards the average line.

So, the question is. If you enter trades using bollinger bands indicator, will you become a profitable trader?

In the next few minutes, i will show you how the profit graph looks like after taking 100 trades, and how much is the real winning percentage of the bollinger bands strategy, and how many losers you can expect in a row. I will fast forward the next clip to save your time. The following clip can help you understand, how this strategy looks in different market conditions, so do watch carefully.

For back testing, i have used Euro JPY chart. This strategy works on any time frame, and also works on both forex, and stock markets. Here, I’m using 30 minutes time frame. I’m also taking sell setup in this example. Strategy for sell setup is very similar to buy setup. Sell setup is just opposite of buy setup.
You can see how the win rate and profit graph changes, as i take more trades. The real win rate will be revealed when we reach 100 trades or more. There are different ways to set profit targets. Here in this example, profit target was set 1.5 times more, than the risk i was taking. You should always take profit, more than the risk you are willing the take!

As you can see on the left, for back testing, i’m using 10000, as my starting balance. Also, I’m only risking 1 percent of my account balance, on a single trade. You should only risk 1 to 2 percent of your account, on a single trade. Otherwise it will be difficult to handle losing trades, that will come in a row. Money management is the key to success in this business! In this example. When i lose, i only lose 100. But when i win, i win 150. So, even if i lose one and win one, i will still make money.
Some strategies work on intra day only and some work better on daily time frame. This strategy however, works on all time frames.

It took me around 1 hour to back test 100 trades, and while testing, some trades almost came close to hitting the stop loss, before going back and hitting profit targets. Don’t panic when market is very close to hitting your stop loss. Losing is part of trading. Whole point of making this video, was to show you the number of losers, you can have in a strategy. No strategy works 100 percent of time. Even professional traders use strategies, that only work 60 to 65 percent of time. As i always say, The key to make money is money management, and trading psychology! Master that, and you can become a professional.

That’s all. Now you know the win rate of the bollinger band strategy. Remember, I took trades based on Bollinger bands and 200 period Moving average. If you use different setup, your win rate may be different than this.

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Thanks for watching.