Bollinger Band Breakout Systems

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spitt2000
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Bollinger Band Breakout Systems

Post by spitt2000 » Sat Dec 25, 2004 7:20 pm

I would like to have some input from the people here on the forum. I have really enjoyed the discussions here on various topics, especially in reference to the Aberration trading system. I have come close recently to purchasing it, but have instead been reading Stridsman's book on various trading systems. What are the strengths and weaknesses of a Bollinger Band breakout system? What are your opinions of such a system? Any comments would be welcome.

Hiramhon
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Post by Hiramhon » Sat Dec 25, 2004 10:06 pm

Hi spitt2000 please tell us a little bit about yourself?
  • Have you ever paper traded?
  • Have you ever paper traded a mechanical system?
  • Have you ever placed a real trade with real money?
  • Have you ever placed a real trade with real money, based on a signal from a mechanical trading system?
  • Have you ever backtested a trading system using a computer and historical price data?
  • How many years have you been (a) systems trading with real money, (b) trading with real money, (c) backtesting trading systems?
Don't worry if you are brand new; there's an entire area of this website called "Total Newbie Questions" for people in your exact situation.

Welcome and Merry Christmas, --__ H.

spitt2000
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Post by spitt2000 » Sat Dec 25, 2004 10:56 pm

I have traded off and on for quite a while with real money, mostly using technical analysis. I have had some good runs that normally end with one really bad trade (where I start using emotion, instead of using my brain). I have recently started investigating mechanical systems with the hope that if I find a decent system, I will basically have a sound game plan, instead of no plan. I have just been apprehensive about purchasing a system, but have come very close to purchasing Aberration. I have no experience backtesting, or with any system. From what I have learned, I think I am a good fit for a mechanical system. I was just looking for insight into the type of system that I seem to be leaning toward. Thanks!

Forum Mgmnt
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Post by Forum Mgmnt » Mon Dec 27, 2004 8:05 am

I highly recommend purchasing the Modus Trading course. It provides a very good foundation for someone at your stage of learning.

You can search for Modus here and find some comments from people who have purchased the course.

I also suggest you take the next step and start doing some testing yourself. Make sure you get a testing program that can test entire portfolios at the same time. People seem to like WealthLab, or Trading Recipes. Trader's Studio is another relatively new program. Of course, I'm partial to VeriTrader, as are many of our customers.

A basic Bollinger Breakout System is included with VeriTrader if you really want to explore it. Many have found the process of testing a system in VeriTrader to be very educational.

There is no substitute for doing your own testing and analysis, whatever platform you end up choosing.

- Forum Mgmnt

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