Bollinger on steroids trading strategy | NSBroker

Posted by Jeremy Anderson Apr 20, 2020

Our today’s star “Bollinger on steroids” is an amazingly simple and elegant strategy, which made its fame among other strategies. This is an intraday system which can be applied on a variety of currencies pairs.

A breakout is any stock price movement outside a specified support or resistance level.

Overview of Bollinger on Steroids Strategy

Regarding the market entries in this bollinger bands strategy forex, the rules of trading will be best illustrated by examples. There are two types of entrances to the market: white signals and blue signals (details below). The main rule of this strategy is: white signals are ALWAYS MORE IMPORTANT than blue signals.

Installing the machine:

“Bollinger on steroids” does the best with D1 time frame and candlestick chart. Two Bollinger bands are required: the Blue one (Period 20, Shift 0, Deviation 1), and the White one (Period 20, Shift 0, Deviation 1.5)

White trading signals to enter the market:

The heart of this bollinger bands trading strategy was based on "white" trading signals. The white signal appears as soon as the price touches the white strip of the Bollinger indicator and then closes inside the channel.

reversal and continuous breakouts
  1. Green arrows: Signals for a deal to buy. In these cases, the price reached the white line, when the candle was closed inside the channel. For these transactions, the profit is closed by SMA (the middle Bollinger Line).
  2. Red arrows: a deal for sale. In all 2 cases, the price touched the upper white Bollinger line then closed inside the channel. SMA is used as a take profit level on the daily interval.

Blue trading signals to enter the market:

The "blue" trading signals represent a "steroid" part of this strategy. "Blue" trading signals are generated at a time when the price is located within the channel, after which it goes beyond the blue line of the Bollinger channel. Let's see how this works.

reversal and continuous breakouts
  1. Green arrows: The price was inside the channel, after which it struck the blue Bollinger line up. Note that it did not reach the white Bollinger line (no white signal). The take profit level is not placed, and the order remains open until the next "White" signal appears. At this point, the deal is closed.
  2. Red arrows: The price left the channel and crossed the blue Bollinger line down.

If you like this strategy, you might also be interested in this Moving average crossover trading

Stop-loss for the trading strategy of Forex “Bollinger on steroids”:

Installation of safety stop-loss depends only on traders themselves. 1 way was to use the distance from the current price on the chart to determine the value of the safety stop loss, to the SMA (medium Bollinger line). If the price is at 1.9635, and the SMA is at 1.9435, then the safety stop loss will be 200 points. Someone might not like such big stop-loss, but this a method to consider stop-loss installation in this forex strategy.

Important rules when applying this forex bollinger bands strategy:

  • Opening one position at a time is a high recommendation;
  • Don’t enter the market until the candle of confirmation is totally closed;
  • All signals must be received within one trading day;
  • The maximum risk for each transaction shouldn’t be more than 2% of your total balance.

Advantages and Disadvantages


  • Helps you to catch a new trend early.
  • Uses popular built-in indicators.
  • Easy to install and track.
  • Provides a detailed guide on buy and sell conditions.


  • Requires patience and good emotion control.


“Bollinger on steroids” is an effective technical strategy with quality indicators to early entries. Given the D1 time interval, this strategy is incredibly suitable for intraday traders. Remember: keep your mind on the ground and right beside your money, as there is no 100% win in the Forex market.


Jeremy Anderson

He worked for NYSE American as a broker for over two years. Distinguished with high performance working with binary options and stocks of increasingly popular products.

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