From "Bitcoin Trading Strategies: Algorithmic Trading Strategies For Bitcoin And Cryptocurrency That Work" by David Hanson.
*Works better with 1hr time frame and some input optimisations.
"Double Bollinger Band Scalping System Recommended Timeframe: 1 minute or 5 minute *
Required Indicators: // - RSI with a length of 14 (default settings) // - Bollinger band #1 settings: Length = 50, stDev = 1 Hide the basis/middle line (basis line not needed for this strategy) Note: This is the slower bollinger band in the directions // - Bollinger band #2 settings: Length 20, stDev = 1 Hide the basis/middle line (basis line not needed for this strategy) Note: This is the faster bollinger band in the directions
Enter Long/Buy Trade When: // - RSI is above the level 50 // - A candle closes above the top of the faster bollinger band Enter a long when a candle then closes above the top of the slower bollinger band, and price is above the top of both bands Place a stop loss under the low of the entry candle Example of a long trade using this strategy Exit Long Trade When: A candle closes below the top band of the fast bollinger band
Enter Short/Sell Trade When: // - RSI is below the level 50 // - A candle closes below the bottom of the faster bollinger band Enter a short when a candle then closes below the bottom of the slower bollinger band, and price is below both bands Place a stop loss above the high of the entry candle Example of a short trade using this strategy Exit Short Trade When: Price closes inside the bottom of the faster bollinger band"