Bollinger with Stochastic

30 thg 1, 2018

Buying logic:
This strategy will start considering moving into a buy position once we are low on the bollinger bands and our stochastic oscillator shows that the asset is oversold. At this point, it will wait until it sees a tick which has a close higher than that of the previous one and will initiate a buy.

Selling logic:
This strategy has 2 instances in which it will begin looking to sell during normal behavior:
1) We pass a threshold on the bollinger bands which we consider a "hard sell" threshold. Setting BB Hard sell to 1.00 will dictate that we start looking to sell once we hit the top band. Setting BB hard sell to .5 will dictate that we start looking to sell once we hit the middle band.
2) The stochastics show that the asset is overbought
Once either of these are met, the strategy will wait until we have 2 falling close prices in a row and sell

In a less favorable scenario, we may decide to sell if the price has dropped too far from our buy price. This can be tailored by setting the "Percent drop sell" parameter

Rebuying after a bad buy:
This strategy inherently runs the risk of having positive buy indicators after selling a "bad buy". To prevent this, we don't consider looking for new trade opportunities until we've closed above the lower band at least once since our last bad move.

Parameters

• Percent drop sell: After buying in, what percentage does it have to drop before we give up on the order
  
• Simple moving average history: Amount of ticks to take into consideration for SMA
  
• BB Hard sell: 1.00 = upper band, 0.00 = lower band, .50 = middle band. Whatever this value is set to, that's when we will hard sell BB regardless of what the Stochastics say
  
• BB Buy: Same numbers as BB hard sell. This determines what we consider a "low" point on the BB and at which point we will start allowing buys. For instance, .25 would be right between the middle and lower bands]
  

30 thg 1, 2018

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