Financial Switchwords

Techniques for
Mastering
Bollinger Bands
Trading Bollinger
Bands like the Pros
TrendFollowingMentor.co
By
Andrew Abraham
Andrew@TrendfollowingMentor.com
Disclosure
While the author have used their best
efforts in preparing this book, they make
no representations or warranties with
respect to the accuracy or completeness
of the contents of this book and
specifically disclaim any implied
warranties of merchantability or fitness
for a particular purpose. No warranty
may be created or extended by sales
representatives or written sales
materials. The advice and strategies
contained herein may not be suitable for
your situation. You should consult with a
professional where appropriate. Neither
the publisher nor author shall be liable
for any loss of profit or any other
commercial damages, including but not
limited to special, incidental,
consequential, or other damages.
Past performance is not necessarily
indicative of future performance. The
risk of loss in trading futures contracts,
commodity options or forex can be
substantial, and therefore investors
should understand the risks involved in
taking leveraged positions and must
assume responsibility for the risks
associated with such investments and for
their results. You should carefully
consider whether such trading is suitable
for you in light of your circumstances
and financial resources.
This publication contains references to
hypothetical trading results. This
publication contains references to
hypothetical trading results.
HYPOTHETICAL PERFORMANCE
RESULTS HAVE MANY INHERENT
LIMITATIONS, SOME OF WHICH
ARE DESCRIBED BELOW. NO
REPRESENTATION IS BEING MADE
THAT ANY ACCOUNT WILL OR IS
LIKELY TO ACHIEVE PROFITS OR
LOSSES SIMILAR TO THOSE
SHOWN. IN FACT, THERE ARE
FREQUENTLY SHARP
DIFFERENCES BETWEEN
RESULTS AND THE ACTUAL
RESULTS SUBSEQUENTLY
ACHIEVED BY ANY PARTICULAR
TRADING PROGRAM. ONE OF THE
LIMITATIONS OF HYPOTHETICAL
PERFORMANCE RESULTS IS THAT
THEY ARE GENERALLY PREPARED
WITH THE BENEFIT OF HINDSIGHT.
IN ADDITION, HYPOTHETICAL
TRADING DOES NOT INVOLVE
FINANCIAL RISK, AND NO
HYPOTHETICAL TRADING RECORD
CAN COMPLETELY ACCOUNT FOR
THE IMPACT OF FINANCIAL RISK
IN ACTUAL TRADING. FOR
EXAMPLE, THE ABILITY TO
WITHSTAND LOSSES OR TO
ADHERE TO A PARTICULAR
TRADING PROGRAM IN SPITE OF
TRADING LOSSES ARE MATERIAL
POINTS WHICH CAN ALSO
ADVERSELY AFFECT ACTUAL
TRADING RESULTS. THERE ARE
NUMEROUS OTHER FACTORS
RELATED TO THE MARKETS IN
GENERAL OR TO THE
IMPLEMENTATION OF ANY
SPECIFIC TRADING PROGRAM
WHICH CANNOT BE FULLY
ACCOUNTED FOR IN THE
PREPARATION OF HYPOTHETICAL
PERFORMANCE RESULTS AND ALL
OF WHICH CAN ADVERSELY
AFFECT ACTUAL TRADING
RESULTS
** THE MATERIAL DISPLAYED IN
THIS PUBLICATION IS INTENDED
FOR EDUCATIONAL PURPOSES
ONLY
Table of Contents
Introduction
Day Trading Bollinger
Bands
Bollinger Bands with RSI
Support & Resistance with
Bollinger Bands
Trend Breakouts with
Bollinger Bands
Trading Bollinger Bands in
a Portfolio
Following Trading Plan
Risk & Money Management
Hypothetical Example of a
Portfolio
Introduction
John Bollinger developed the concept of
Bollinger bands in the 1980s. Bollinger
bands are volatility bands placed above
and below a moving average with a
multiple of a standard of deviation. The
length of this moving average can vary
depending on the time frame of the trader
and the sensitivity. The standard for
position sizing (daily bars) is generally
20 periods. However for day trading it
is suggested to be much less. It can be as
little as 10 periods. This is something
the individual trader can test depending
on their own personal preferences.
Volatility is based on the standard
deviation, which changes as volatility
increases and decreases. The bands
automatically widen when volatility
increases and narrow when volatility
decreases. The robustness of the
Bollinger bands makes this indicator
applicable to all time frames and all
markets. The tightening of the bands is
often used by traders as an early
indication that the volatility is about to
increase sharply. The closer the prices
move to the upper band, the more
overbought the market becomes, and the
closer the prices move to the lower
band, the more oversold the market
becomes. However markets can stay
overbought and oversold for long
periods of time. In this short ebook we
will discuss various ways in order to
use Bollinger bands as far as
1. Day Trading using Bollinger
Bands
2. Oversold & Overbought with RSI
Reversals
3. Support and Resistance
4. Breakout Potentials
5. How to build a Trend Following
Portfolio
Simple calculation
* Middle Band = 20-day simple
moving average (SMA)
* Upper Band = 20-day SMA + (20-
day standard deviation of price x 2)
* Lower Band = 20-day SMA - (20-day
standard deviation of price x 2)
Day Trading With Bollinger

Bands
You can adjust the parameters however I
suggest a short moving average such as a
10 or 12 and a 2 standard deviations.
This will let you get in quickly at the
start of a trend move. 10-12 is sensitive
and apt to cause small losses. You might
want to test the length. There is no magic
number. The only magic number is one in
which you can follow.
MetaStock®Copyright© 2012 Thomson

Reuters. All rights reserved.
Past Performance is not necessarily
indicative of future performance
Uptrends and downtrends can be
easily identified by Use of Bollinger
Bands.
The Trend is over or tapering off when

the prices stop hitting the bands and the
bands turn flat or turn down.
KISS…Keep it simple and

stupid…Not Rocket
Science…
Using the RSI

The RSI is the relative strength index.
The reason I suggest you add this
indicator as it gives confirmation to the
Bollinger Band concept. The RSI
measures the strength of the trend. As I
stated earlier we are momentum traders
we look for only strong trends. This is
what the RSI can help us do.
For Buy confirmation we want to see the

RSI above 70. I forget the trader but he
invented this concept called the
Stochastic pop. What it signifies is a
very strong trend. You could exit once
the RSI falls below 70.
For sells we do exactly the opposite. We
look for the prices to be touching the
bottom of the Bollinger bands and the
RSI to be below 30. Again not Rocket
Science.
Further confirmation can be had with the use of

the MACD. You only want to take trades to the
long side when the MACD is above the zero
line as well as the signal line above. You only
want to take short trades when the MACD is
below the zero line as well as the signal line.
Support and Resistance &

MACD with Bollinger
Bands
Combining the MACD and support &
resistance with Bollinger Bands gives
you a heads up for potential trades. In
one of my other ebooks I spoke about
divergences. Divergences are when
prices are increasing and the MACD
does not follow. In the example below it
is very clear that prices hit the upper
bands and then fell to the lower bands.
This showed weakness as well as the
MACD confirmed this as well. The
MACD was trending downwards at a
time prices were rising. This was a RED
FLAG. The thought to go short was
confirmed by the support being broken.
This pattern will occur over and over
again.
Contrarily later on in the chart above,

you will notice the MACD rising and
increasing. Prices have stopped falling
and a resistance was formed. At the
breakout of the resistance prices were
hitting the top of the upper band. Each of
these moves was significant.
Trend Breakouts with Bollinger Bands
One never knows when there trends truly

begin. However a potential heads up is
when there is a contraction in the bands
and they tighten up. All markets and all
time frames go through periods of
contraction and expansion. Potential
trend moves from a breakout of in a
narrow Bollinger band setup tend to
have more follow through then other
types of breakouts.
In the example below you will notice a
contraction of the bars as well as a
breakout of the resistance led to a major
move. All confirmed by the MACD &
Bollinger bands.
Netflix is another example. The bands

were tightening and the MACD was
diverging from the downtrend. Drawing
a simple resistance line confirms the
breakout with the Upper bands being hit
and MACD. Netflix went from
approximately $70 to $127 until closing
below the middle Bollinger Band
signifying time to exit the trade
Trading Bollinger Bands in

a Portfolio
The Buy signal with a Bollinger Band

is a breakout of the upper band with
the risk to the middle band.
The Sell Signal with a Bollinger Band
is a breakout of the lower band with
the risk to the middle band.
Trading Bollinger Bands in a portfolio

in itself is very simple and robust.
However do not think this will be easy.
You will always have trades that do not
work as well as many losses. There is
no way to avoid losses or trades that do
not work. You need to develop your own
trading plan based on your own
personality and you must be available to
actually implement it. As I will show
you, most trades do not work. However
the potential big winners can make up
for the losses.
Depending on your account size and the

depending what you are trading you can
make a portfolio of diverse markets &
sectors to trade. As part of your trading
plan you choose the markets. You never
know what markets will move. You
always want to make yourself available
for any trade. More so you cannot pick
and choose which trades to take. You
must take them all. Neither you nor I
know the future and must believe
anything can happen. You need to be
consistent.
Learning and focusing on being a
successful consistent trader means:
Realizing that any trade does not have to
work
That any trade has a 50/50 chance of
working
That anything can happen.
Because of these simple 3 points you

realize you must trade with a complete
trading plan with all potential outcomes
pre planned. You realize you must trade
with stops. You realize you must try to
keep the inevitable losses small. You
realize when a trade does work you must
be patient and follow your exact trading
plan.
You Just Follow Your
Trading Plan
You see the signal and you put the trade

on. There is no fear or greed or anxiety.
You have seen this signal before, it is
familiar, you know just because you put
the trade on, it does not have to work
(Be profitable).
Successful Trend Followers strive to be

consistent. You just follow your trading
plan and have accepted & embraced the
risks. You know that the trade does not
have to work, so why force it? You
know how much you are risking on a
trade. I say to myself, how much this
trade will cost me to see if it will work.
I am willing to risk a small percentage
(1%) of my trading equity to see if this
trade will work. I have accepted I will
easily lose 1% on this trade. It is no big
deal. I know that I can have series of
trades not work. I also I know I can
stumble on to a big trade. I have
accepted the uncertainty and the
financial risk. If you have not accepted
the financial risk or uncertainty you
should not be trading whatsoever.
Consistency produces uniform trading

profits over time. Consistency is
achieved with an exact Trading Plan.
There is nothing left to think about.
RISK & Money

Management
I strongly suggest you do not risk more

than 1% of your account size on any
trade as well as look to cap your sector
and total portfolio risk. I suggest you do
not allocate more than 5% of your
account size to any particular sector. For
example you do not want to be more than
5% allocated to the tech sector or
housing sector if you trade stocks. As
well if you decide to trade futures do not
allocate more than 5% of your portfolio
to the interest rates or grains. Once you
filled that sector stop taking trades. What
happened to me a long time ago was, I
thought I was taking low risk trades
however all the trades were correlated. I
woke up one morning with a big loss.
More so I suggest you stop taking trades
when/if you have more than 20% open
trade equity. What this means is if you
have a $150,000 account and you have
$30,000 in open profit, stop taking new
trades. Many times your biggest
drawdowns occur after your biggest runs
up.
When using Bollinger bands you can

determine you’re per trade risk by when
you have a long trade you measure the
distance from the Upper Band to the
middle band. If you take a trade at the
Upper band and it retraces back to the
middle band the trade did not work and
you must exit. For short trades if it
retraces back to the middle band the
trade did not work and you must exit.
Measure the distance and figure out how
many shares or contracts you can trade.
For example,
Upper Band 20
Middle Band 16
Account Size $100,000
Risking 1%= $1,000 Max Risk
Upper Band – Middle Band= $4
$1,000/$4= 250 shares
Hypothetical Example of a
Bollinger Band Portfolio
Before I continue, I want to state that
indicative of future performance and the
below is a Hypothetical example used
for educational purposes only.
( HYPOTHETICAL PERFORMANCE
SHOWN.)
Please read full disclosure
I made a group of 40 diverse future
markets to present you what could
happen. In the portfolio I selected to risk
1% on any trade. In the example I tested
the portfolio from 2000 to 2013 with a
$150,000 account size.
Hypothetical Example
At first glance this looks wonderful.

Sign me up- Show me the money.
However for almost 2 years 2000 to
2002 you would have not made any
money and experienced a severe
drawdown. Would you have stayed
trading? Or would you have stated this
model is broken or garbage? Most quit
and would have sought a new program.
My goal is to show you how “EASY IT
WASN’T” nor will it potentially in the
future. There was another long period in
2005 and 2006 that there were no profits
and again a steep drawdown. This is
reality. There is no way to optimize it or
avoid losses. In 2009 there was another
steep drawdown. This is why you need
to be highly capitalized as well. From
2010 till 2012 you still would not have
made any money.
With all that reality and negativity stated

this Hypothetical Educational example
could have generated 15.79%. However
it was a VERY Rough ride. There was
one drawdown of -32.1% and there was
a period close to 2 years you did not
make any money. This is what to
possibly expect or it could even be
worse. Your worse drawdown is ahead
of you. Not behind you.
Hypothetical Example ONLY Past
Performance is not necessarily indicative of
future performance
Do not think there are any magical

trading robots or Holy Grail concepts
that can avoid these inherent
drawdowns. I have traded since 1994
and have personally experienced very
ugly periods in which you question
yourself if the concept is still valid.
However when you least expect it you
stumble onto trades that start working.
As David Druz wrote in my book The
Bible of Trend Following, you get
knocked down…you get back up..and
you get knocked down again. This is
trading. This is reality! It is a marathon
and it never easy.
Yearly Hypothetical Performance

Hypothetical Example ONLY Past
Performance is not necessarily indicative of
future performance
This yearly Hypothetical example also

looks deceivingly easy. It does not show
the intra month and monthly drawdowns
or losses. You will also notice the
number of trades. You must be consistent
and take every trade. I doubt you know
the future. If you miss even just one trade
your chances of success are greatly
diminished. This one trade you passed
on could be the big winner of the year.
You are your biggest enemy because
of your emotions Fear & Greed!
In order to develop the right mindset,
you need to know what to expect when
trading. Many traders mistakenly believe
that trading will result in a consistently
rising account balance, like having an
ATM in their office. But you already
know that losses are a part of our
business as traders. There will be some
days and weeks when you’re trading
exceeds your expectations, but more
likely there will be periods when your
trading results are far worse than you
expected. It’s essential that you maintain
a long-term perspective. That is why I
commonly say Trend Following is a
marathon. Too many traders and even
investors in traders focus on short-term
results and lose their perspective. I am
asked all the time how did you do last
month or last year. The reality is, it is
meaningless. If I had a great month or
year does that mean I will have a great
month or year following? Probably not! I
am at the mercy of the markets trending.
If they do not trend I will not make any
money. They do not have to do anything.
I like the analogy; if there is fish I
believe I stand a good chance to catch
them. If there is no fish…probably going
to eat pasta that day?
There are only 4 possibly outcomes on a
trade
Big Losses- That is why you must put
stops in the market
Small Losses- These happen all the time
& no way to avoid them
Small Profits- These cancel out the
small losses
Big Profits- These are rare- this is why
you must be consistent and take every
trade
The Next 1,000 Trades

Yes that is really how I think. I
look at any one trade as
insignificant. I think in a series
of trades. There is no reason
to get bent out of shape when
a trade did not work. Any one
trade is just one out of 1,000
or 10,000 trades that I will
have over the years. I mostly
trade commodities and in the
following charts you will
notice some very interesting
things. I have had and will
always have long series of
trades that do not work.
I “try” to keep my losses

small.
The trades that work are much

greater than the trades that do
not work. I just keep on going.
The goal is consistency once
you have your trading plan.
Past Performance is not indicative of
future performance
In the above in the yellow

highlight you see the series of
losing trades. In between there
were two very small profitable
trades. How many of you
would quit at this point and
look for the next system? It
does not matter if you are
trading forex, commodities or
stocks. You will always have
series of losing trades.
future performance
In the above chart you will see mixed in

the group of trades some nice winning
trades. If one had given up during the
series of losing trades 4 to 7 in a row;
they would not have stumbled onto some
of the “rare” big winning trades.
future performance
No one ever rings a bell when there are

profitable trades. You just make yourself
available. You “try” to keep your loses
small and let the probabilities unfold.
You need to be consistent, follow your
trading plan with patience and
discipline.
future performance
Trading is like fishing. You will not

always catch big fish. There will be long
periods that you will not catch any fish.
It is all a probabilities game. Most
important for the millionth time, devise a
trading plan that matches your trading
personality that focuses on risk
management and money management.
Accept the inevitable losses. Once you
pass this stage of trying to prevent losses
you are possibly on track to start
compounding money.
Think of like this, you drive from

Florida to New York. You know that
there will be traffic jams, you know that
you will need to stop to go the bathroom,
you know that you will need to sleep,
you know that you must wear a seatbelt.
Basically you have tempered your
expectations of getting from Florida to
New York not in 2 hours but more like
24 hours. You know the journey is
dangerous and you wear a seatbelt. You
have prepared yourself. It is the same
with trading. It is a marathon. It is a
journey. You must realize there will
always be losses. You must realize that
there is nothing perfect. You must realize
that you can lose money, which is why
you trade with stops. You accept the
uncertainty of driving to New York. You
know that there is no certainty. You
accept the uncertainty, yet so many
cannot accept the uncertainty of trading.
Equity curves do not go up at 45 degree
angles. There are always pullbacks in
the real world and when trading with
real money.
Position Sizing is the Holy

Grail of Trading
The difference between
traders and great traders is
determined by their position
size throughout a trade.
Position sizing is exactly how
much to buy or sell based on
the dollar size of the trading
account and the volatility of
the issue. There exist various
books on money management,
but most of them talk about
one of the results of money
management (risk control)
rather than the subject itself.
Money management is
essentially that part of your
system that determines your
position size-that answers the
question “how much”
throughout the trade. There is
the Martingale position sizing
that some swear by however I
prefer my methods. The
Martingale position-sizing
strategy in which the position
size increases after you lose
money. The classic martingale
strategy is where you double
your bet size after each loss. I
feel this can lead to a potential
blowup.
Position sizing tells you

exactly how much to buy or
sell is based on the dollar size
of the trading account and the
volatility of the issue. The
volatility is the $ dollar risk
from entry signal to the initial
hard stop exit in case the trade
does not work.
Good Trades & Bad Trades
A famous trader once said “Don’t
confuse Winning and Losing Trades with
Good and Bad Trades
First one needs to define a good trade
and bad trade. The definition of a good
trade or bad trade is simply following
your trading plan and rules. A good trade
cannot work and lose money…but it is
still a good trade. A bad trade is when a
trader does not follow their plan and the
trade works. They are negatively
rewarded.
Simply A good trade can lose money,
and a bad trade can make money.
Even the best trading processes will
lose a certain percentage of the time.
There is no way of knowing a priori
which individual trade will make money.
As long as a trade adhered to a process
with a positive edge, it is a good trade,
regardless of whether it wins or loses
because if similar trades are repeated
multiple times, they will come out
ahead. Conversely, a trade that is taken
as a gamble is a bad trade regardless of
whether it wins or loses because over
time such trades will lose money.
Money Management & Risk

Management
Larry Hite, a famous successful trader
from the 1980s, put it very simply:
Traders make bets when they trade. If
you lose all of your chips, you can’t
bet!
In other words, you are out of
business!
His quotes are monumental:
There are just four kinds of bets. There

are good bets, bad bets, bets that you
win, and bets that you lose. Winning a
bad bet can be the most dangerous
outcome of all, because a success of
that kind can encourage you to take
more bad bets in the future, when the
odds will be running against you. You
can also lose a good bet, no matter how
sound the underlying proposition, but if
you keep placing good bets, over time,
the law of averages will be working for
you.
No matter what information you have,

no matter what you are doing, you can
be wrong.
One of the great things about the

market is, the markets don’t care about
you. The market doesn’t care what
color you are. The markets don’t care if
you are short or tall. They don’t care
about anything. They don’t care
whether you leave or stay.
… The beautiful thing about the

markets, they don’t like you, they don’t
dislike you, they just don’t care. They
are there every day. You want to play,
you can play. You don’t want to play,
don’t play. We approach markets
backwards. The first thing we ask is not
what can we make, but how much can
we lose. We play a defensive game.
I wish you success in your trading and if

I can assist you please let me know.
Thank you
Andrew
Thank you for reading this ebook on
trading. I have been in the markets every
day since 1994. I have seen bull markets and
bear markets. I know what has a chance of
succeeding overtime. Trading is not easy. If
you want to improve your trading and
looking for a personal mentor, I offer one
on one hourly sessions. The focus can be
from developing your personal trading
plan, risk management, mechanical trading
systems and most importantly trading
psychology. If you are interested we can
arrange a time to speak for 20 minutes in
order to see if we both believe I can
improve your trading. You can email me at
Andrew@Trendfollowingmentor.com
Look For My Other Books
The Bible of Trend Following

Essential Factors for Being a Successful
Stock Trader
Psychology of Trading
The Power to Profit with the MACD
Nicholas Darvis- $2,000,000 Stock
Trader
The Most Common Mistakes Commodity
Traders Make
Bio
Andrew Abraham is a commodity
trading advisor at the firm Abraham
Investment management as well as the
author of the book The Bible of Trend
Following- Professional traders
compound money and manage the
risks. He specializes in systematic and
mechanical trend following, utilizing
stringent risk management techniques to
limit losses and capturing a small
number of major trends to generate
returns. His website is
TrendFollowingMentor.com. Abraham
has been trading his proprietary account
since 1994 as well as investing with
other commodity trading advisors since
the mid-1990s. He has been quoted in
numerous trading publications as well as
he has written for Technical analysis of
Stocks and Commodities, Investment
advisor magazine, Futures magazine
and many others. Abraham has spoken at
Bloomberg events, presented at the
Traders Expo, Emerging Managers
Expo, CTA Expo and other industry
conferences and has done webinars for
Reuters Metastock.
Disclosure
While the author have used their best
efforts in preparing this book, they make
no representations or warranties with
respect to the accuracy or completeness
of the contents of this book and
specifically disclaim any implied
warranties of merchantability or fitness
for a particular purpose. No warranty
may be created or extended by sales
representatives or written sales
materials. The advice and strategies
contained herein may not be suitable for
your situation. You should consult with a
professional where appropriate. Neither
the publisher nor author shall be liable
for any loss of profit or any other
commercial damages, including but not
limited to special, incidental,
consequential, or other damages.
Past performance is not necessarily
indicative of future performance. The
risk of loss in trading futures contracts,
commodity options or forex can be
substantial, and therefore investors
should understand the risks involved in
taking leveraged positions and must
assume responsibility for the risks
associated with such investments and for
their results. You should carefully
consider whether such trading is suitable
for you in light of your circumstances
and financial resources.
This publication contains references to
hypothetical trading results. This
publication contains references to
hypothetical trading results.
SHOWN. IN FACT, THERE ARE
FREQUENTLY SHARP
DIFFERENCES BETWEEN
RESULTS AND THE ACTUAL
RESULTS SUBSEQUENTLY
ACHIEVED BY ANY PARTICULAR
TRADING PROGRAM. ONE OF THE
LIMITATIONS OF HYPOTHETICAL
PERFORMANCE RESULTS IS THAT
THEY ARE GENERALLY PREPARED
WITH THE BENEFIT OF HINDSIGHT.
IN ADDITION, HYPOTHETICAL
TRADING DOES NOT INVOLVE
FINANCIAL RISK, AND NO
HYPOTHETICAL TRADING RECORD
CAN COMPLETELY ACCOUNT FOR
THE IMPACT OF FINANCIAL RISK
IN ACTUAL TRADING. FOR
EXAMPLE, THE ABILITY TO
WITHSTAND LOSSES OR TO
ADHERE TO A PARTICULAR
TRADING PROGRAM IN SPITE OF
TRADING LOSSES ARE MATERIAL
POINTS WHICH CAN ALSO
ADVERSELY AFFECT ACTUAL
TRADING RESULTS. THERE ARE
NUMEROUS OTHER FACTORS
RELATED TO THE MARKETS IN
GENERAL OR TO THE
IMPLEMENTATION OF ANY
SPECIFIC TRADING PROGRAM
WHICH CANNOT BE FULLY
ACCOUNTED FOR IN THE
PREPARATION OF HYPOTHETICAL
PERFORMANCE RESULTS AND ALL
OF WHICH CAN ADVERSELY
AFFECT ACTUAL TRADING
RESULTS
** THE MATERIAL DISPLAYED IN
THIS PUBLICATION IS INTENDED
FOR EDUCATIONAL PURPOSES
ONLY

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Techniques for

Day Trading With Bollinger

MetaStock®Copyright© 2012 Thomson

The Trend is over or tapering off when

KISS…Keep it simple and

Using the RSI

For Buy confirmation we want to see the

Further confirmation can be had with the use of

Support and Resistance &

Contrarily later on in the chart above,

Trend Breakouts with Bollinger Bands

One never knows when there trends truly

Netflix is another example. The bands

Trading Bollinger Bands in

The Buy signal with a Bollinger Band

Trading Bollinger Bands in a portfolio

Depending on your account size and the

Because of these simple 3 points you

You see the signal and you put the trade

Successful Trend Followers strive to be

Consistency produces uniform trading

RISK & Money

I strongly suggest you do not risk more

When using Bollinger bands you can

At first glance this looks wonderful.

With all that reality and negativity stated

Do not think there are any magical

Yearly Hypothetical Performance

This yearly Hypothetical example also

The Next 1,000 Trades

I “try” to keep my losses

The trades that work are much

In the above in the yellow

In the above chart you will see mixed in

No one ever rings a bell when there are

Trading is like fishing. You will not

Think of like this, you drive from

Position Sizing is the Holy

Position sizing tells you

Money Management & Risk

His quotes are monumental:

There are just four kinds of bets. There

No matter what information you have,

One of the great things about the

… The beautiful thing about the

I wish you success in your trading and if

The Bible of Trend Following

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