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Double Bollinger Bands Strategy To Trade Forex

Double Bollinger Bands Strategy is a mechanical trading strategy. It means it doesn’t need analysis and interpenetration to decide whether the formed trade setup is strong enough to enter the market, or it is weak and you’d better to skip it and wait for a better one. It is either black or white. It means either a trade setup is formed which means you should enter the market, or there is no trade setup at all.

Such a mechanical trading system is good for those who have no patience and knowledge for analyzing the markets and locating the trade setups based on the technical analysis or candlestick signals. It just tells them to enter a market or stay out. Therefore, sometimes it can have a very low success rate specially in some months because the markets conditions change and a mechanical trading system can’t be used as reliable tool to trade any market any time. This is what you have to note if you want to use such trading systems.

The reason I am sharing this system here is that some people always ask about it. This system has been introduced to Forex traders as an ultimate trading system that makes money for them consistently. I just want to clarify that it is not the Holy Grail, and because it is mechanical, it can generate consecutive losses sometimes.

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What Is Double Bollinger Bands Trading Strategy?

This trading strategy which is called “Double Bollinger Bands” or DBB, is very simple, because although you use candlesticks in this system, you don’t have to be worried about the candlestick patterns. You don’t have to know the weak and strong candlestick patterns and differentiate them from each other. You don’t have to know anything about technical analysis and other complicated techniques.

In spite of such a simplicity, this trading system can generate more trade setups, while you don’t have to spend any extra time at the computer. You just check the daily charts for few minutes per day, if there is any trade setups based on this system, you take the positions, set the stop loss and target orders, and come back the next day. So, this trading system is good for those who like to take some positions every day and can’t handle a day or a few days of having no trade setup. However, you have to strongly consider that having more trade setups and taking more positions doesn’t necessarily mean more profit. In most cases it means more losses.

You don’t have to spend any extra time and energy to follow this system. You don’t have to manage your positions too. It is a completely mechanical trading system, which means it is either white or black, and it doesn’t need any analysis and interpretation. There is either a trade setup on the chart, so you take your position, or there is no trade setup, and so you check the chart the next day. You don’t have to analyze and consult different time frames, indicators, lines and… to decided whether you should go for the trade setup or you’d better to skip it because it is not a strong trade setup. It is not like that at all. There are only two conditions: (1) there is a trade setup formed on the chart, so that you take it, and (2) there is no trade setup on the chart, so that you check it again the next day. It doesn’t take you more than a few seconds to check each chart and see whether there is any trade setup already formed or not.

How Does The Double Bollinger Bands Strategy Work?

All you have to do is adding two sets of Bollinger Bands indicator. That is why this trading system is called “Double Bollinger Bands Trading Strategy”.

Use the default settings for the first Bollinger Bands:

Period: 20
Deviations: 2
Shift: 0

In this article, I refer to this Bollinger Bands indicator as BB2, because its deviations is set to 2.

The “deviations” of the second BB indicator, has to be set to 1:

Period: 20
Deviations: 1
Shift: 0

In this article, I refer to this Bollinger Bands indicators as BB1, because its deviations is set to 1.

So the only difference of these two Bollinger Bands is in the deviations settings. The first one is set to 2 and the second one is set to 1.

That is all you have to have on your charts. After adding the BB indicators, your chart should look like this:

Two Sets of Bollinger Bands in Double Bollinger Bands Trading Strategy

The outer BB has the default settings and its deviations is set to 2. The inner BB is the one that its deviations is set to 1. The Bollinger Middle Band will be the same, because deviations settings has nothing to do with it. Of course, in this trading system we don’t use the Bollinger Middle Band. We only use it to hold the positions to maximize our profit, but it has no role in forming the trade setups and taking the positions.

Double Bollinger Bands Trading Strategy is good for trading the trending, as well as the ranging and sideways markets.

Here is how the trade setups form based on the Double Bollinger Bands Trading Strategy:

Long Trade Setups:

To go long (to buy), you have to wait for one of the candlesticks to close above the BB1 upper band. Then you should check the previous two candlesticks to see whether their close prices are below the BB1 upper band or not. If so, you have a long trade setup (buy signal). Please see the below chart. It is USD/JPY daily chart. As you see, candlestick #3 is closed above BB1 upper band, and at the same time the two previous candlesticks (#1 and #2) are closed right below BB1 upper band. This is a long trade setup. It means you should buy at close of candlestick #3:

Long Trade Setup

Stop loss has to be set at the low price of the candlestick which has pierced the BB1 upper band (I mean candlestick #3), and the target can be at least twice of the stop loss size (2 x SL). You can move the stop loss to breakeven if the price moves according to the trade setup for 1 x SL. For example, when your stop loss is 60 pips, then you can move the stop loss to breakeven if the price goes up for 60 pips. Of course I will tell you how to trail the price to maximize the profit in case you don’t want to get out with a 2 x SL target.

Here is another example of a long trade setup:

Another Long Trade Setup

Another example of a long trade setup on EUR/USD daily chart:

Long Trade Setup on EUR/USD Daily Chart

Another one:

Long Trade Setup on USD/JPY Daily Chart

Sometimes, candlestick #3 not only breaks above the BB1 upper band, but also reaches the BB2 upper band too. This happens when the security is trending strongly:

Strong Uptrend

This also occurs when there is a strong uptrend and we are not already in:

Another Strong Uptrend

Note: When candlestick #3 is too long, you can set the stop loss higher than its low price, not to have a too wide stop loss.

Short Trade Setups:

To go short (to sell), you have to wait for one of the candlesticks to close below the BB1 lower band. Then you should check the previous two candlesticks to see whether their close prices are above the BB1 lower band or not. If so, you have a short trade setup (sell signal), and you can go short (sell) at close of the candlestick which has broken below the BB1 lower band.

Candlestick #3 on the below chart has closed below BB1 lower band while candlesticks #1 and #2 have closed above it. This is a short trade setup. Like the long trade setups, the stop loss has to be set at the high price of candlestick #3, and target can be at least twice of the stop loss size (2 x SL). You can move the stop loss to breakeven if the price goes down for 1 x SL.

Short Trade Setup

How To Maximize Your Profit?

As I explained above, this trading system is good in catching the trends. Therefore, you’d better to take the advantage of the strong movements and maximize your profit.

When there is a strong trade setup, you can also take two positions with the same stop loss, when there is a trade setup based on the Double Bollinger Bands trading system. Set a 2 x SL target for the first position, and no target for the second one. If the first position hits the target, move the second’s position stop loss to breakeven and hold it.

In case of a long position, hold the second position as long as the candlesticks form between the BB1 and BB2 upper bands, or above the Bollinger Middle Band. Close the second position when candlesticks start crossing the BB1 upper bands, or when one of the candlesticks breaks below the Bollinger Middle Band:

Maximizing Your Profit in a Long Position

In case of a short position, hold the second position as long as the candlesticks form between the BB1 and BB2 lower bands, or below the Bollinger Middle Band. Close the second position when candlesticks start crossing the BB1 and BB2 lower bands, or when one of the candlesticks breaks above the Bollinger Middle Band:

Maximizing Your Profit in a Short Position

Of course, markets don’t trend all the time. Indeed they trend 30% of the time. It means you should not expect to make hundreds of pips from each trade setup. You can trail the stop loss if you like. For example when your initial stop loss is 80 pips, then you can move your stop loss further for every 80 pips that it moves accordingly.

What Time Frame?

Double Bollinger Bands Trading Strategy works on all time frames, but I use it on the daily and longer time frames, because it is easier, safer and more profitable. Never think that you will make more profit if you apply this trading system on 5min or 15min charts. Trading the shorter time frames is nothing but headache, and you will not make more profit.

I spend about 15-30 minutes checking the charts every day, but I am more profitable than day traders who sit at the computer for several hours per day, every day.

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284 thoughts on “Double Bollinger Bands Strategy To Trade Forex
  1. Tom says:

    Hi Kamel,
    your strategy looks great, I like that I can use it with Chris strategy together. Thank you 😉

  2. okeke says:

    Looks like a very simple and stress free system. I will surely try this one out. Many thanks!

  3. singh says:

    welcome back Kamal. I love articles along with Chris ones. You`r are always interesting one . Chris himself says “Kamal is tricky as trading on Middle BB is”

    stay posting !

    Thanks

  4. Rafiq says:

    Great article! Whole trading system in one page with easy words…. Very much helpful for beginner like me. I will increase my investment using this strategy. Will start following this strategy from the beginning of next week.

    Thanks a lot for your great article…. 😀

    Thanks,
    Rafiq

  5. Maurice says:

    Thank you for this article Kamel and God bless you.

    Best Regards,

  6. agyusant says:

    Thank you, Kamel..!!

  7. jeff says:

    Thank you Kamel, looks interesting and simple. Is there no use for the BB2 middle band in this strategy?

    Jeff

  8. steve says:

    hi Kamel…thanks for yet another eye opening article..i have one request Kamel please dont stay too long without writing something for us…you guys are exceptional!

  9. fani says:

    Thank you Kamal for sharing.

  10. prasad says:

    Good article.

    where can i find Chris trading system?
    plz give me link

    thanks

  11. John M. says:

    Glad to see you back Kamel. Thanks for sharing this – it looks great!

    Take care –

  12. Mark says:

    I have used this with great results. I do add a third BB with a deviation of 3. It acts as a very strong support and resistance levels.

  13. Nick says:

    Hi Kamel thanks for a great article as always. I do have one question though:
    In an uptrend, if your #3 candle closes above the BB1 and the #1 and #2 candles closed below the BMB, will it affect the trade setup?

  14. Barbara says:

    Hi Kamel

    Just had to say thanks for a new trading system. I will be giving it a go.

    God bless

    Barbara

  15. behnam says:

    Hi Kamel
    very good to see you back . there are two things that make question here:
    q1: according to this new trading strategy, on the USD/JPY daily chart ( AT THE END OF THE ARTICLE) we can go long near (3) because of white strong candlestick form and break out the BB1 upper band and two previous candlesticks closed below BB1 upper band.
    q2:same as above we should sell below the position (4) because of forming shooting star candle stick which breakout BB1 lower band and two previous candles that closed upper BB1 lower band. why it is not happened and you did not based on new strategy.
    thanks for reply

  16. Bashar says:

    Hi Kamel, Many thanks to you for sharing your simple trading system, God bless you all, just a question ….what pairs are better to be traded by this system?

  17. Peter Wagner says:

    Hi Kamel / Chris
    Kamal – thank you for what looks like a great strategy – and thank you Chris for Kamel.

    Kamel – would you please look at the candle EURUSD for 2014-10-30 – if this were traded, (and it seems to comply with the system – except that candle 1 closed below the BMB), then it would be stopped out – would you please advise what you would do? – the move was potentially a powerful one (320Pips to the open order’s first exit point) and ran between bands BB2 & BB1.

    • Kamel says:

      Hi Peter. I think the candlestick date should be different that what you mentioned. Please check and let me know.

      • Peter Wagner says:

        Hi Kamel
        Thanks for your attention – you are right – I had both the date and pair wrong – it was the 2013-10-30 candle on the USDJPY daily chart – thank you for looking at this.

        • Kamel says:

          Hi Peter,

          Yes, that is a good example of a long setup.

          • Peter Wagner says:

            Hi Kamel
            But it would clearly get stopped out by the 2013/11/07 candle (even so the 2 x profit target may have scraped in) – as it would be stopped
            I was wondering how you would handle it – if you had had this trade on?

            Would you just let the stop happen?

            And then would you consider a re-entry based on the size of the 2013/11/08 candle plus the close of the 2013/11/06 candle being practically on the BB1 line?

            OR would this revert to a possible BMB continuation entry condition?
            It is a very interesting group of candles – in view of the rules.

          • Kamel says:

            Hi Peter.

            Sorry. If you mean 2013.10.30 candlestick on USD/JPY I would not take it because 2013.10.28 candlestick closed below BMB. Compare this with 2014.07.29 trade setup on USD/JPY daily chart, and you will see what I mean.

          • Peter Wagner says:

            Thank you Kamel – I see –

            the move strength of the 2013-10-30 setup was weakened by candle 1 not making the “close under upper BB1 rule” – the move started but due to a weak setup, lost motion and handed back control to the bears. Looking at it again, I see that bullish control only came in suddenly with the 2013/11/08 candle – but without a DBB set up.

            However, the 2014-07-29 setup was a strong enough setup to make 3 x stop – and even though control was given back to the bears – the candles were mostly small doji’s or bearish with longer lower shadows – all indicating that stronger bullish pressure was afoot.

            And this can be then seen with the 19 August 2014 DBB set up, which maintained bullish control, going on to make 595pips (for the second open order) until the first exit point – a ‘close below upper BB1’ in accordance with the rules.

            Thank you I see.

          • Kamel says:

            You are welcome.

  18. Abbas says:

    First, my regards to Chris, Initially, i found it hard to understand the morale of this wonderful community, but now i realized it is simple ‘BEST THINGS IN LIFE ARE FREE’.
    To Kamel and Chris, please stay alive guys, we need you here.

  19. Timothy says:

    Hey Kamel A.

    God bless you with this an eye opening and the regards you have for Chris!
    For giving such a huge strategy free without taking a dime God will replenish you with wisdom and knowledge like he did to Solomon
    And to Chris, More grease to your elbow and wishing you the best life can offer
    We all your fans appreciate you and wish you good health and prosperity
    Amennnnnnnn
    I am Timothy
    from Abeokuta Ogun State Nigeria

  20. Jho says:

    Hi Kamel,

    Thanks for the kind sharing. is it necessary to have three candlesticks for the setup? What if there will only be two candlestick before the setup, will that setup still be a valid one?

    Regards!

  21. simon says:

    Hello Kamal,

    Would you please advised if the pair EUR/AUD just closed last week on 2014.10.24 on a Daily chart.

    I noticed candlestick on 2014.10.24 closed below Lower BB1 and two subsequent candlestick before 2014.10.24 , closed above Lower BB1. Hence, is this a valid Bearish (sell) setup?

    Thank you very much of your introduction of another enhance setup!

  22. vinod pande says:

    dear kamel how to use this stratagey in sideways and ranging markets as you have mentioned above in your article

    • Kamel says:

      Exactly the same rules have to be applied to the ranging market. When a setup forms we don’t know if the market keeps on ranging or we are at the beginning of a strong trend. We take the setup, and move the SL to breakeven on time. Then we sit back and watch. Time will tell if we will have a trend, or the price will turn around and stay in the range zone.

  23. Tan says:

    Hi Kamel,

    Thank you for sharing this with us. You guys are awesome people. I am new to these, did a lot of wrong things, hence have not been profitable yet. However, you guys gave me hope and the believe that all is going to be ok. I am addicted to Chris’s post every day and the comments very informative too.

    Cheers

  24. vinod pande says:

    dear Kamel is it must to have two candels closed below the BB1 . If # 1 candel is closing below the MB, # 2 candel is closing just below the BB1 in an uptrend . and the #3 candel is closing above the BB1 . will it be valid trade setup to trade long .

    • Kamel says:

      Hey Vinod, It is still a setup, but you’d better to go for the typical setups I explained above. Let’s keep it as simple as possible and not to have too many exceptions and extra rules.

  25. Hash.Patel says:

    Hi Kamel, Great article. Good strategy. Welcome back. Would like your daily post.

  26. Kurt says:

    Hi Kamel, Thank you for sharing his. It’s a great way for entering a trending market without having to wait for a typical strong set up.

  27. simon says:

    Hi, Kamel,
    For learning to identify the setup validity. Is the pair GBPCHF on monthly closed candlestick on 2014.05.01(closed above BB1) with previous 2 candlestick 2014.04.01 and 2014.03.01 (both closed below BB1) , as a valid BULLISH(Buy) setup ?

  28. simon says:

    Hello, Kamal,

    Apology, I did not indicated properly of previous GBPCHF monthly chart. It should all at UpperBB1.

    Another pair for learning again. AUDCHF weekly chart. Candlestick closed on 2014.10.05 was below LowerBB1. 2 candlestick before (2014.09.28 & 2014.09.21) closed above LowerBB1. So, is these a valid SHORT setup ?

    Thank you for your time and valuable effort, appreciate very much

  29. Ted says:

    Dear Chris and KAMEL

    Thank you kamel for a very brilliant post. I’m so proud and pleased to be associated with such loving and kind hearted people like you. Please never stop writing to us. I read these posts with the greatest of pleasures!

    Could you gentlemen kindly explain the BB head fake to me and how it might be involved in ‘our’ beautiful trading system? I just would like to hear how you gentlemen explain this phenomenon.

    I look forward to your response.

    Once again, Kamel… Thank you! From the very bottom of my heart. I wish you both long and continued success in everything you do.

    Boy! Aren’t we all just so lucky to have these guys guide and care for us!!! I know I am. Thank you.

    Chris & Kamel… Stay well and take good care of yourselves for our sake!!!

    • Kamel says:

      Hi Ted,

      Thank you for your comment and kind words.

      I don’t think that BB head fake can make serious problems for us. We have to be aware that our stop loss can be triggered sometimes with any trading system we follow. In case of BB head fake, in most cases it can not affect our positions, because we move our stop loss to breakeven as soon as the price moves for 1SL toward the target.

    • Chris says:

      Thank you Ted 🙂

  30. Peter Wagner says:

    Hi Chris & Kamel
    Once again Thank You

    question on the AUDCAD daily chart 2014-10-24 candle – currently in Chris’s system we are short – the current candle looks ominous against the trade and this is also now a long set up under Kamel’s system?

    • Kamel says:

      Hi Peter,

      No, it is not a long setup. 2014.10.24 candlestick is closed below BB1 upper band.

      • Peter Wagner says:

        Hi Kamel – thank you for answering – I am sorry to have wasted your time – I did not check MT4 platform – I used a candle from my brokers data (not MT4) which had the daily 2014/10/24 candle closing the high at 0.9850 which is above the BB1. Hence my concern. Sorry to waste your time -However, I did not waste mine as it has shown me to be more careful and always check MT4 – closing times obviously have a considerable impact and it reinforces what Chris says – “until the candle closes …. we do not know where it will finish”. In this case I happened to be watching at 10mins to close and the price was equally performing on both MT4 and my other platform. I am very surprised and a bit confused at this revelation.

        • Kamel says:

          Hi Peter. You did not waste my time at all. I will be happy to help. The daily candlestick close time is very important. Any platform you use, make sure that daily candlesticks close at 5pm est.

  31. David says:

    Hi Kamel,

    The W1 of EURAUD closed above BB1 on 2014.10.12 so we go long on 2014.10.19 (W1) and this SL triggered?

    Thank you.

    • Kamel says:

      Hi David,

      Yes. Your SL will be triggered sometimes. This is the only thing I can guarantee.

      • Peter Wagner says:

        HI Kamel
        re stop loss triggered sometimes – ” this is the only thing I can guarantee ” This has to be the most honest thing I have ever heard from a mentor of trading. Perfect! And as Chris says – nothing is sure in anything – The old saying ‘ its as sure as a Suisse Bank ‘ was even stopped out. I’m not sure if the watches still hold up though?

        • Kamel says:

          Hi Peter. Thank you. Trading is nothing but taking risks. Where the price will move when we enter is what we really don’t know. The only thing we can do is limiting our risks and losses. There is no doubt that our stop loss will be triggered sometimes. This is what we can not do anything about. Something that makes us profitable at the end of the month is that we enter properly, make our losses small, and our gains big. If so, and if we trade the way I explained above, even if we win 51% of the time, we will end up the month with profit.

  32. David says:

    And the AUDJPY W1 2014.10.12 short trade still valid?
    If so it’s against with Mr. Christ set up?

    Thank you.

  33. Parson says:

    Hi Kamel,
    I would like to say Thank you for your new method. Its very kind of you sharing with us. Anyway I have a question regarding your new system. In spite of opening the new trade( either long or short), does the 3rd candlestick have to be a long candle stick? Can it be a short one? Also, in case of the 3rd candle stick breaking the BB2 with very long bullish or bearish candle stick, is it still the right time to go long or short? Will it be effective?

    Regards
    Parson

  34. Majid says:

    hi kamel
    your article about candlesticks shadows was one of the best articles i have ever read about. thanks for you good articles.
    i have one question. usually a good Long trade setup formed when candlesticks break Bollinger lower band. i mean a good uptrend usually start from Bollinger lower band and go up to Bollinger upper band. in this method we lost half way of an uptrend.
    am i right or i misunderstood the method?
    thank you again

    • Kamel says:

      Hi Majid,

      Thank you.

      Yes, you are right. In DBB system, we ride the trend when it has already formed and moved sometimes for several candlesticks. But the good thing is that we ride the trend when it is almost proven that a trend is started.

  35. Abbas says:

    Hi Kamel,
    With this trategy, if the stop loss get triggered, do we re-enter or we just wait for the next one?

  36. Daniel says:

    Hi Kamel,

    Nice and simple trade system! In regards to your exit/SL, do you typically trail your SL or just wait for the candle to cross back over the BMB/BB1 to exit? You mentioned both options but it appears that you prefer to wait for the cross back rather than trailing the stop. I guess waiting for the cross back allows for the bigger trend runs but the trailing stop prevents you loosing your profit if a trend doesn’t happen.

    • Kamel says:

      Hi Daniel. I sometimes move my SL further, but I don’t take it too close to the market movements to give enough room for the price fluctuations.

  37. David says:

    Hi Kamel,

    Thank you so much for your effort.

    Could you tell me the candlesticks (#1 and #2) are MUST closed between BB1 and BB Middle Band or they just need close anywhere above/below BB Middle Band?

    Thank you.

    • Kamel says:

      Hi David,

      It is better if they close between BB1 and BMB, like the examples I showed you above. It would better if candles #1 and #2 close right below BB1 upper band in case of long, and above BB1 lower band in case of short trade setups. This is the typical trade setup.

  38. Maria says:

    Hi Chris,

    Thanks a lot for the great strategy, it looks good.. But, are there any special tips or tricks for this strategy? I tried to do this strategy with 4H timeframe on multiple pairs but I got more losses than gains..

    • Chris says:

      Hi Maria,

      There is no tips and tricks. It is as simple as it is explained above. Trade the daily, weekly and monthly time frames using this strategy and look for the trade setups exactly as it is explained above. You will have a lot more gains than losses.

  39. Mike says:

    Hi Kamel,

    I have read all your articles. They are brilliant. I am glad that you are writing and generously share more awesome knowledge again.

    I have one question about the DBB. I would to know the logic behind this trade set up. It would be very useful to understand the mechanism of how the price react to it. This is not I don’t believe your trade set up . I feel this is another effective trade set up and yet very simple which accounts for both statistics and the market psychology, thus I would like to know it better in details.

    I understand that 1SD and 2SD can be interpreted as probability under normal distribution, 68% and 95% with regard to the price’s volatility.

    So, does it mean that while the price move within the range of midBB and BB1 (normal market), and then suddenly the price pierce through the BB1 (go out of the range 68% confident interval, 1SD) indicates that the bull start to gain power and take control of the bear?

    Do I understand it correctly? Please correct me.

    Thanks,

    Mike

    • Kamel says:

      Hi Mike,

      Thank you.

      About the logic behind this strategy, honestly I don’t know more than what you explained. This strategy is not invented by me. I initially learned it from Chris and other senior traders, but I used more seriously than the others. I know that there are so many traders who use this strategy.

  40. Asiri says:

    It’s cool Kamel….. Thank to kamel and Chris for Sharing such a great Trade setups…

    Good Luck you all…..

  41. Bob says:

    Hi Kamel,

    Awesome article. Keen to give it a go.
    Just a question, I noticed on 2 of your long trade setup examples that either candle 1 or candle 2 were closed above BB1, but you mentioned that we have a setup if these are both closed below BB1. How critical is this?

    Thanks in advance for your reply, and also thanks a million times for the unselfish efforts of Chris and yourself in helping us become profitable traders.

    Regards,
    Bob.

  42. Tino says:

    thank you so much for your insight guys, i have been a victim of day trading and it does shatter your confidence when you trade smaller time frames…the irony is when i take a short position and then close it because its gone against me, at the end of the trading day, if i had of kept the position with the bias of being short, i would have made a lovely 60 pips, instead i took a loss of 20 pips because my time frame of 15 mins stopped me out…

    this stuff you guys teach is priceless…

    God Bless you

  43. Otto says:

    Thank you for sharing another strategy.
    Is it really profitable? Could you please share its characteristics (especially profit factor, possibly loss rate (stop loss hit at its initial place)) based on your experience?
    It’s so mechanical that it can be automated relatively easily, and backtest on the daily chart. I will do it as my time allows, and will share my results here.

    • Kamel says:

      If one trades exactly as it is explained above, yes it is profitable even if only 51% of the setups hit the 2 x SL target. I have not calculated the profit factor, but it has worked for me for years.

      • Michael says:

        I would be really interested in even a rough indication of how profitable this system has been for you. Like an average of 0-5% per month, 15-20% per month, or somewhere in between?

        It would boost my confidence a lot if i knew that someone has used this for years with decent profit.

  44. Pete says:

    Oh boy….Hi Kamel. I bet when you and Chris discussed whether or not to share this strategy then Chris probably warned you about all the feedback you would get about this…..lol! It took me 15 minutes just to read this post.
    You guys are the best……..

  45. Mus says:

    Hi Kamel..
    Today I just try your DBB system on GBPUSD H4.. Happy to said it worked.. It hit 2 x SL target (long position).. Next I will try in bigger time frame.. Many thanks to you for your simple technic..

  46. Ebuka says:

    Really easy and interesting system. Keeping it simple stupid. I really am interested in following the system.

    However, I have questions:
    1. Following the system, how can we afford consolidations and little trend pull backs?
    2. Must candlesticks 1 and 2 form and close under the BB1 or only close under it (Long Setup)?
    3. Can you please give us an approximate win rate of this strategy ?

    Thanks

  47. Alwin says:

    Hi,

    Your system simply super.

  48. Redpants says:

    Kamel I need to test this in demo really enjoy all your articles thanks again mate . Sorry I slow to respond taking a holiday best John

  49. Andrew says:

    Hi Kamel and Chris

    Firstly I am new to and and have recently came across your page in the last few days. I wish to thank both of you for sharing with all of us I will be putting this system to work today and will continue to read your articles which I find extremely interesting and simple thank you again guys I hope some day I can be a successful trader.

  50. yoengjyh says:

    The double bollinger band if not mistakenly was from Kathy Lien, right?

    I would like to know that have you develop the drawdown % for the DDB system?

    Many thanks Kamel.

    • Kamel says:

      We have been using this system for 15 years. Almost all professional trader know about this system. It is neither invented by us, nor any other known person.

      No, I don’t have the drawdown %.

      • yoengjyh says:

        Thanks kamel. The way you reply was so impressed! haha~

        I got a doubt on candlestick chart. I found that different brokers provide different trading hours thus it would affect the form of candlestick.

        if like that, may i know which is the best timing to follow? GMT-5? GMT+2? or any other?

        What server timing your broker offer to you?

  51. Michael says:

    Hi Kemal , I really love this BB system, its great, but there are just not enough setups in week over 19 pairs for me to trade it full time .. But what you guys are sharing here is really great, thanks you very much . Michael..

  52. reghulal says:

    Hi..thank you so much for the report. Can you kindly let me know if the close of third candle is above BB1 upperhand and close of previous two candles are below BB1 LOWER hand….what stand I should take.

    Kindly reply…
    Thank you so much in advances

    Regds
    Reghulal KR

  53. Angus says:

    Hi Kamel/Chris,

    Just getting clarification on DBB strategy.

    This is what was said in the article “To go long (to buy), you have to wait for one of the candlesticks to close above the BB1 upper band. Then you should check the previous two candlesticks to see whether their close prices are below the BB1 upper band or not.”

    My question is in a long situation, whether the two prior candlestics (the ones below BB1) need to be bullish candles or can they have their close prices lower than the open prices?

    Thanks again.

  54. Anders says:

    Hi Chris,

    This DBB strategy is really a wonderful trading system! Thank you for sharing with us your wealth of knowledge and systems. 🙂

  55. Jeng says:

    Kamel, Chris,

    I’m practicing using the DBB system and had one winning trade already. A good one, Short,GBPJPY 12/16/14, $1106 profit. However, a later trade, Short,NZDUSD after the 12/17/14 candlestick, (Daily chart), closed below lower BB1 with Candles #1 and #2 closing above LBB1, went sour. I interpreted this situation as a Short trade setup since it conformed, as I understand, to the DBB Trading rules. The trade went against me and hit SL after going up rather than down. It’s still going up!

    What did I miss in evaluation of the setup.

    I’ll appreciate your comments/criticism.

    Regards,

    Jeng

  56. Jeng says:

    Kamel,

    While I sincerely appreciate your mentoring, even as I strive to comprehend the DBB strategy, presently, I am very confused: referencing the USDJPY Daily,the 2014.12.16 candle clearly closed below LBB1 while candles #1 & #2 closed above it. Now, according to the rules in the above article, this should constitute a “Short” trade setup. Yet, as you can see form the chart, price has moved “up”, from the suggested entry point,(close of candle #3), some 2500 pips as of 12/18/14, 0013hrs, UTC.

    Could you please help me clarify this confusion.

    If you prefer please reply privately to my email.

    Kind regards and many thanks for your mentoring.

    Jeng

    • Michael stJohn van Eeden says:

      Hi Jeng , Michael this cool site and saw your here not Kamel , I was just sitting here catching up on some reading and saw your post . If I may answer you ?

      They way I would interpret this is , on Daily ,

      The candle on 12th did not close below mean the 20 and was a indecision candle spinning top.The candle on the 15th did .

      But also,this has been a strong up trend for long time on daily ,weekly ,and monthly ?

      So based on all things, mainly the rules of BB. The candle did not close below the 20 , this is not a sell .Not sure how to give a picture of this anyways ..

      Hope that helps .. Michael…

    • Michael says:

      First of all, this is an important article: https://www.luckscout.com/we-are-traders-not-fortune-tellers/

      There is never a guarantee where the price will go, even with a perfect trade setup. No trader in the world can predict prices. There are probabilities only.

      Secondly, there are ways to increase your success rate with the DBB strategy: https://www.luckscout.com/how-to-increase-double-bollinger-bands-trading-system-success-rate/

      By picking only the optimal setups, you filter out a lot of bad trades (and some good ones as well, but overall, profitability should increase).

      Then there is another article with some more general DBB rules explained further, maybe you’ve already read it: https://www.luckscout.com/dbb-trading-system-rules-for-long-and-short-trade-setups/

      In your example, candle #2 is good, but candle #1 isn’t, because it closes above the middle band. Also candle #3 closes almost below the lower BB2 which is also not optimal, but still acceptable (these extra rules are explained in the second article i linked. I have just begun to use them myself.

  57. Michael stJohn van Eeden says:

    Hi Jeng , I meant to type , This is Michael not Kamel ,and was just reading some posts , not sure what happened there in begging of my comment , but the rest of post is straight ..

  58. Fosters says:

    Is DBB recommended to be traded only on Daily or can we apply it to Weekly and Monthly please? If yes, how exactly do we trade it on Weekly and Monthly?

    • Chris says:

      Yes, DBB can be applied to weekly and monthly time frames. The rules are exactly the same.

      • Fosters says:

        Thank you for your response. What I actually mean to ask is following the rules on weekly and monthly would require huge stop loss setting and was thinking there could be a way to trade it on daily. So is best to leave it if cannot be traded according to rules?

        • Chris says:

          If your account cannot handle wide stop loss orders, then you’d better to forget about trading the long time frame. Of course, trading the shorter time frames also increase the risk.

  59. farzin says:

    hi, thanks for sharing such posts. this is a great and simple method but i tested some recent charts with it and it had some wrong trades too. so how should we reduce the loss trades of this method? look at following pictures for example :
    http://usserver.org/images/ /Eur_Usd/dbb-eurusd2014.jpg
    and it should complete more as it doesn’t detect some of great trends.
    it is not a rule for every pairs and correct every time but some times it shows huge profits.

  60. Ali says:

    Hi Kamel.
    Thanks a lot.

  61. Jason says:

    Thank you for sharing this knowledge I’ll be sure to keep this spirit as i grow and become more confident and profitable. I noticed that in some daily chart examples there are five bbs and four in others, is this due to zooming while captured? Thanks again.

  62. Jason says:

    I apologize if my questions have answers in the comment’s I normally try to read the entire page to keep redundant questions off you guys but honestly its late and my batteries is about to die and the power is so i want to get it posted and i value every word on this blessed blog. I noticed in the going short chart examples a cpl had candles one and two closed a little above bb1? The only reason I could think of would be they formed strong patterns like in the bb break out system. thank you.

  63. JojoW says:

    Hello,

    I have backtested your strategy, here are my remarks:
    – first 2 candles doesn’t play role in the strategy and are useless, as they are filtering out many otherwise profitable trades.
    – using breakeven in this strategy is significantly reducing performance of the trading system
    – BB2 is not necessary, doesn’t improve profitability in any way

    Following best backtest results i got is based on the strategy rules:

    Open long:
    – if previous candle opened below BB1 upperband and closed above BB1 upperband
    – stoploss goes below previous candle low

    Open short:
    – if previous candle opened above BB1 lowerband and closed below BB1 lowerband
    – stoploss goes above previous candle high

    Takeprofit should be set to 8x – 10x (open price – stoploss ) distance

    Exit long:
    – if previous candle closed below BB1 middleband
    Exit short
    – if previous candle closed above BB1 middleband

    EURUSD, backtest 1999 – 2014, starting capital 10000 USD

    ============
    Yearly gain:
    ============
    1999: 40 [-0.4709 %] -47.0910 (9952.9092)
    2000: 37 [13.4727 %] 1340.9209 (11293.8301)
    2001: 50 [-16.2283 %] -1832.8000 (9461.0303)
    2002: 47 [37.3463 %] 3533.3459 (12994.3760)
    2003: 45 [77.4461 %] 10063.6426 (23058.0195)
    2004: 50 [6.0964 %] 1405.7102 (24463.7305)
    2005: 47 [4.4194 %] 1081.1555 (25544.8867)
    2006: 41 [11.6208 %] 2968.5081 (28513.3945)
    2007: 46 [15.6369 %] 4458.5991 (32971.9922)
    2008: 39 [20.1819 %] 6654.3691 (39626.3594)
    2009: 43 [-12.3807 %] -4906.0059 (34720.3516)
    2010: 44 [17.1850 %] 5966.6978 (40687.0508)
    2011: 48 [5.0655 %] 2060.9893 (42748.0391)
    2012: 44 [-7.9236 %] -3387.2031 (39360.8359)
    2013: 54 [12.2980 %] 4840.5811 (44201.4180)
    2014: 39 [0.2107 %] 93.1342 (44294.5508)
    ========
    Summary:
    ========
    TotalNetProfit (Gross Profit – Gross Loss): 34294.5625 (148142.9375 – 113848.3828)
    Maximal drawdown: 23.9278% (5469) [17387.5176, 22856.5977]
    Profit factor: 1.3012
    Total trades: 714
    Profitable trades (% of total): 215.0000 (30.1120 %), Average profit: 689.0369, Largest profit: 3856.3274, Average duration: 23.1535 candles
    Breakeven trades (% of total): 0.0000 (0.0000 %)
    Losing trades (% of total): 499.0000 (69.8880 %), Average loss: -228.1531, Largest loss: -467.1993, Average duration: 5.1864 candles
    Long Positions (won %): 117.0000 (54.4186 %)
    Short Positions (won %): 98.0000 (45.5814 %)

    • RUBENS SOUZA says:

      Hi Jojo

      Good that you backtested it.
      How much did you risk per trade to get to these results?
      How is it going with your modified DBB ?

      Cheers
      Rubens

  64. Hala says:

    Hi
    I am a novice starter and still loosing money :), Thank you very much for this site it is educating me a lot.
    I have a question for Kamel in the above article when you mention
    “move the second’s position stop loss to breakeven and hold it.”
    I couldn’t understand the breakeven idea .. I mean How? can you please explain further.. or if there is a link that I can look at for detailed explanation ..
    Thank you

  65. Michael says:

    Do i understand correctly, you wait until the daily candle closes and at that moment you make a decision? Or is it possible to look at the candles on a different time during the day and act then? For me the daily candles close at 6 in the morning so i would have to wake up early (and yes, if you say it’s necessary, then i will set my alarm clock early 😛 ).

    • Chris says:

      You can use this method on any time frame, but daily and longer time frames return better results because they are stronger.

      It is OK if you check the daily chart even at 8 am because usually markets don’t move that much during that two hours.

  66. Michael says:

    I found this a bit confusing:

    “In case of a long position, hold the second position as long as the candlesticks form between the BB1 and BB2 upper bands, or above the Bollinger Middle Band. Close the second position when candlesticks start crossing the BB1 and BB2 upper bands, or when one of the candlesticks breaks below the Bollinger Middle Band.”

    In the first sentence, the “or above the Bollinger Middle Band” seems to suggest that candlesticks between the middle band and BB1 upper band are fine and the position shouldn’t be closed. The second sentence says the opposite? Maybe that paragraph (and the corresponding one about shorts) could be clarified a little.

  67. Michael says:

    “Close the second position when candlesticks start crossing the BB1 and BB2 upper bands, or when one of the candlesticks breaks below the Bollinger Middle Band”

    Does this rule still apply if this happens between SL and the profit target of the first position?

    What i mean: there’s a buy signal and i open two positions. The first one’s target (at 2xSL) is hit, leaving just the second position. The price doesn’t go higher, but instead falls to between the old profit target and the SL (which has now moved to break even) and here candles close below the BB1 upper band (but this is still above break even). Do i follow the rule i quoted, or do i leave the position open until break even is hit or until it goes above the old 2xSL profit target?

    Sorry for the wall of text for a single question, but some details are not clear to me.

  68. Michael says:

    During my daily round i noticed that i may have been doing something wrong since i started with the DBB strategy (less than a week ago). I was moving the SL of both positions to break even when the price moved 1xSL in my favor. But now that i read the article again (see the quoted text below), i see that i should only move the SL of the first position and that i should not move the SL of the second position until the first position hits TP. Is this correct? Or does it not matter?

    From section “long trade setups”
    “You can move the stop loss to breakeven if the price moves according to the trade setup for 1 x SL.”

    From section “how to maximize your profit”
    “If the first position hits the target, move the second’s position stop loss to breakeven and hold it.”

    • When the first position hits the TP, you move the SL of the second position to breakeven. If the first position is 1:1 which means its stop loss and target sizes are the same, then when the first position hits the TP it means it has moved for 1xSL.

  69. Michael says:

    I’m sorry, i think i haven’t explained myself well enough in my previous comment. The way i interpret the above quoted text is that if the price is at 1.5 x SL (or anywhere between 1 x SL and 2 x SL), then the SL of the first position would have been moved to breakeven, but the SL of the second position has not changed and is still at “-1 x SL”. So at that point you have two different stoplosses, is that correct?

  70. Michael says:

    “You don’t move the SL of the first position.”

    Now you lost me, because i really don’t see how i can interpret this part of the article any other way (i use 2 x SL as the target for the first position):

    “[…] the target can be at least twice of the stop loss size (2 x SL). You can move the stop loss to breakeven if the price moves according to the trade setup for 1 x SL. For example, when your stop loss is 60 pips, then you can move the stop loss to breakeven if the price goes up for 60 pips.”

    In that example, my target would be 120 pips. What i wanted to know was when to move the second position to breakeven. Should i do that when price is at +60 pips ( at the same time i move the SL of the first position) or when it’s at +120 pips (when the first position hits TP).

    Again, sorry to take up your valuable time, i realize you must be very busy between writing all these wonderful articles and answering questions from other people. It’s just that i want to be 100% sure about the rules. If i’m doing something wrong, I’d rather find out now than in 6 months.

    The strategy is already working nicely on my demo account, GBPNZD made a nice dive today 🙂

    • hi Michael,

      Sorry for my confusion. The above article is written by Kamel and that is his strategy. I don’t move the first positions stop loss to breakeven.

      Glad to hear you have been doing good so far.

  71. JojoW says:

    Not really sure, what you don’t understand on this simple strategy. Just read it multiple times and watch examples from authors. Only valid questions on them are, if they backtested their strategy and what’s the success ratio and average win/average loss ration.

    I have simplified this strategy to maximal extent and even increased the profitability and proved it in backtest. So if the original strategy is too complicated to you, you can use the rules i have posted above.

  72. Ashraf AK says:

    It’s an amazing strategy that only very few generous-minded people dare to share.

    Can I know what percentage you earn monthly/annually by applying this strategy?
    I think that can tell us more about its success rate.

    Thanks

    • Hi Ashraf,

      It is impossible to answer this question, because markets behave differently every month. Please read the below comments. Some trader have back-tested this system and published the results on this page.

  73. Sajid Ali says:

    Hi Kamel:
    Thanks for your article i have read all the article and it is very good for daily time frame trading…
    can you tell me how to download Double bolinger Band….

    looking forward for your positive and prompt reply…

    • Kamel says:

      Hi Sajid,

      You are welcome.

      You don’t have to download anything. You should add two Bollinger Bands to the same chart. One of them with the default settings and the other one with Deviation=1

  74. George Kontakos says:

    It seems to me that the trade is setup today at the euro/usd.

    Thanks for the article.

  75. Sajid Ali says:

    Thanks Chris

  76. Ashraf AK says:

    I am desperate that you did not answer my question on Mar 5, 2015 on this same thread..!! Meanwhile you keep on responding on others’ comments.!!

  77. Sebastian says:

    Is the opposite direction for the DBB setups also “true”/likely to succeed for often than fail?

    Example for a downtrend:
    – two candles close between BB1 upper band and BB2 upper band
    – one candle closes bearish below the BB1 upper band but above the middle band to make it stronger

    I can see exactly that in the gold chart right now, but maybe it’s a coincidence, because of the 1200 USD psychological mark.

    • Sebastian,

      Please upload an example to tinypic.com and share the URL here, so that I can see what you mean exactly. Thank you.

      • Sebastian says:

        Hello Chris,

        http://i57.tinypic.com/wc0k80.jpg

        What I mean is technically a “reversed DBB setup” so from the top to the bottom.

        The typically DBB setup:
        – we have two candles between the middle band and bb1 band for a strong setup
        – we have one candle closing above bb1

        The idea (screenshot):
        – we reverse it
        – we have two candles between the bb2 upper band and the bb1 upper band
        – we have one candle closing below the bb1 lower band
        – in the screenshot the two candles are the gravestone doji and the bearish candle touching the purple line, which is a 50 SMA
        – the third candle closes below bb1 upper band

        I guess it’s a coincidence and not a setup. Today’s candle shows me that it’s retesting the 50 SMA, so I assume the reason we went down was the 50 SMA.

  78. Sebastian says:

    I’ve just seen the last gold bearish candle also closed below the 50 SMA, that might also be the reason…

  79. Giorgi says:

    Hello Chris
    I am appreciate to find this site as I am novice in trading and thank you and your friends for such huge support, almost read all 5 steps and trying follow your points. I am at stage of analyzing and practicing, so I have question: USD/JPY daily 11.02.2015 long bearish candle formed engulfing pattern, strong breaking upper BB, from everything what I read here, it is strong short setup, but price went up, what was confirmed by DBB strategy with 14-15-16.02.2015. May I know what did I miss?
    Thank you for your attantion

    • Giorgi,

      1. We don’t take the short trade setups that the participant candlestick has a considerable lower shadow in it. The 2015.02.12 candlestick has a too long lower shadow.

      2. Sometimes even the best and strongest setups hit the stop loss. You have to be prepared for it.

  80. TJ Chance says:

    Hi Kamel, Chris,

    It is unbelievable what you do here guys! I am just overwhelmed.

    I really hope that you receieve as much as you give because you deserve it

    Have you ever check what is the winning rate for this strategy? It looks so simple to follow and yet effective.

    One more time, Thank you so much for the great work.

    TJ

  81. Brett Bills says:

    This is such a great strategy for us working stiffs thank you Kamel for sharing.

  82. Manfred Eisen says:

    Kamal,

    this is great!
    Thank you for sharing a system so effective and simple with all of us and for free.
    I just stumbled across your free system online, since I just completed a very similar daily system myself and looked for ideas to finally make it work.

    I created one with a quite similar idea to catch trends in the beginning. Since I did not know a better way, I based mine on moving averages and candlesticks but I find your approach with two sets of Bollinger bands a whole lot more comfortable and precise than MAs alone could be. So your way to keep things simple is just incredible to me.

    I plan to apply that system as soon as possible. First I need to refund my account, because I let mine be torn down by a lot of mistakes Chris identified in his article about greed. So I hope to do better in the future.
    You and Chris are incredible, unselfishly educating people with true wisdom and encouragement.

    My ultimate goal is to be able one day to give wisdom for other people to prosper just the way you guys do.
    I am truly greatful and will keep reading your stuff and learn and master everything you share.

    Greetings from Germany

  83. Valdas Ly says:

    Thank You very much for simple and impressive
    strategy!

    Chris and Kamel, You guys are geniuses!:)

    All best to You!

  84. titanium says:

    So, can I use it to trade the continuation signals when I’m not sure about the reversal patterns?

  85. Oesha Roopram says:

    Thank you Chris and Kamal. Testing DBB on demo. Looks very promising.

  86. Nadi brh says:

    Thank you Kamel and Chris

    This trading system is simple and effective. Just started back-testing it and collecting the information on other articles and your comments.

    Would you please tell us that the article about making the first 100000$ applies to this strategy or not?

    Thanks a lot

  87. Y K says:

    Hi Kamel, thanks for sharing this system. Just some quick questions:

    – how long have you been trading it for?

    – Are the results in terms of achievable monthly return, similar to the main candlestick + bollinger system?

    I am somewhat new to technical analysis in general, so I was thinking of trying this system alone because it is simpler and seeing if I can handle it alone, without using the main system.

  88. Md Shafiqul Islam says:

    Chris what happened to Kamel??? Many days have passed since I last saw Kamel articles last in this site. I hope to get something new from Kamel.

  89. Md Shafiqul Islam says:

    Hmm I agree perfectly with u on this point of view. Kamel, show Chris that you are not lazy so that we can see something new articles from u. 🙂

  90. sohais says:

    hi kamel,DBBs is not working in my platform?

  91. B. Hairro says:

    Hi Kamel,

    God bless you for such another great great article.

    I need your confirmation, regarding to your example given above, in case of long trade setup, it doesn’t matter if the #1 and #2 candlestick are bullish or bearish. Only the #3 candlestick have to be bullish in case of long trade setup. Am I right?

    Thank you so much Kamel and Chris.

  92. Muhammad Sohail says:

    hi sir
    i have studied enough articals on LuckScout, actually all of them starting from 2012. i have found DBB very very simple and easy.

    sir my question is that can i use ONLY DBB in my demo untill i learn regular candlestick system.

  93. Charith Darshana says:

    Hi,

    Please anyone can tell me where can i get this double bollianger bands indicator !

    Thank you

    • Charith,

      It is explained above. You add 2 Bollinger Bands to each chart. One with default settings. The other one with Dev 1.

      • Charith Darshana says:

        Thank you Chris. I will try it. 🙂

        • Chandima G says:

          Charith,
          You can add 2 bollinger bands with deviations 1 and 2. If you save this as a template then you can use it again and again easily.

          If you save your template with the name “default.tpl” then it will be loaded with all the new charts automatically. This will be easy for you. 🙂

  94. Chandima G says:

    This is awesome!
    Thank you Kamal!

  95. Abbas Babs says:

    that eurcad d1 set up with dbb. It looks like a bread n butter

  96. malik umair says:

    can anybody tell me how to use the indicators mentioned in the note above eg singh’s indicator for DBB?

  97. Jayson Cabuhat says:

    thank you so much! i will be trying this strategy on my demo account!

  98. F. Kruse says:

    Lovely article!.. though i had it understood, but so far i understand this should be a good bearish signal

    am i wrong or is it just one of those times?..

    link:
    https://www.mql5.com/en/charts/3731087/eurjpy-fix-d1-pro-financial-services

    (the one under the big red arrow to the right)

    best regards
    F. Kruse

  99. malik umair says:

    hi chris
    i have gone through most of this site’s articles since last 15 days and started using DBB method plus daily candlesticks n bollinger method.
    i have left almost all indicators and only check daily candlesticks at close .if there is a setup and a confirmation daily candle is there after the first one i place the order after checking support/resistance if any nearby.and secondly if any DBB setup available i go for it.i have installed majid’s indicator and DBB indicator also which are of great help.
    my question is that do i need to check anything else before going for trade because i have left RSI stoch and other indicators cuz they are like thousands and every indicator tells a different story.i couldnt cope up with them .plz tell me if anything else needed?
    regards
    P.S. u guys are amazing trading by your method is much easier.

  100. F. Kruse says:

    Hey again Chris

    well its around the 18/7-15 on eur/jpy daily market.. i dont know if you can see the link i have set up?..

    all signals are bearish, 2 candlesticks over DBB1 lower and candlestick 3 under DBB1 lower.. would love if u can check out the link and see where im wrong, since only thing i can see is im maybe trading against the market? :S..

    link:
    https://www.mql5.com/en/charts/3731087/eurjpy-fix-d1-pro-financial-services

    best regards
    F. Kruse

    • Yes, I see a short trade setup based on DBB around that area. Of course there is no 2015.07.18 candlestick on the daily chart, because 18th was weekend. Please mark the trade setup somehow so I can see what setup mean exactly. Thank you.

      • Nics Anikitos says:

        Hi Chris/Kamel,

        Hope you are really doing great,

        What could have been the reason for the two consecutive trade set-up failing to hit the target.

        On Eur/Jpy 17th July 2015, I have followed you up mentioned something to do with weekend, what exactly do you mean here?…

        and then on 28th July 2015 Eur/jpy also did not hit the turget. Do you have a special explanation for not trading this set-up or was it okay to take the positions?

        Once more thank you for your energies and sacrifice to teach the whole congregation.

        Stay sage and smart

        God bless you:)

  101. F. Kruse says:

    Hello again Chris

    first of all thanks for taking your time to help me 🙂

    i have taken a new pic and marked the area in a red circle
    on the chart i have made another trade today.. thats a decent bullish setup, right? 🙂
    link:
    https://www.mql5.com/en/charts/3744778/eurjpy-fix-d1-pro-financial-services

    best regards
    F. Kruse

  102. muhaimin mahfudz says:

    How to make double Bollinger bands.

    • Muhaimin,

      It is explain in the article that you should add two sets of Bollinger Bands indicator. One with the default settings and the second one with Deviations: 1

    • Charles Booth says:

      Open your mt4 account or platform and go to the insert button click it select bollinger bands a box should pop up click the parameters it should be 20, 2, Repeat this process and add change the deviation to 1 you should have two sets. Hope this helps.

  103. F. Kruse says:

    Hello again again Chris :P..

    ya i agree with u on the sell on 7/17 and the one a few days ago.. very glad that you agree with me, so i actually can see that im right in my setups :P..
    on the 7/17 bearish signal there was a strong short signal, right?..
    (only bearish candlesticks)
    but it still didnt go up, so its just one of those times where it takes the SL and i try another time, right?..
    hopefully you’ll understand what i mean 🙂

    best regards
    F. Kruse

  104. Farhan Jamil says:

    Has someone written an alert for Chris’s trading strategy? If yes, please share that as well.

  105. David Cowen says:

    Thanks for sharing your strategy Kamel.

    Anything that takes the guess work out of it for us rookies is much appreciated.

  106. Nics Anikitos says:

    Hi Chris,

    This is very much amazing, I don’t understand that you trained Kamel and now he explains and shares knowledge, I’m sure you have got a lot of wisdom, from a lot of wisdom you chose to share with us, You are the only one I know in the Universe who has such a kind heart. Surely it is always defeating my understanding!

    Stay safe and happy always 🙂

  107. Daryl Gymer says:

    Thank you kamel, been using your strategy for a while now and love it, so simple yet very effective!!
    Thank you

  108. julius abidoye says:

    I think I have to start using this strategy combine with master Chris strategy and see what result it will give. I love your article so comprehensive.

  109. Arin Davidian says:

    Hi Chris and Kamel and everyone one who works in this site. I am new to your site and just registered few days ago. the information I find here is amazing and so useful like everyone says. I have been reading your articles about DBB strategy and I found it so amazing. I looked at so many patterns specially in EURUSD and I kind of feel the pattern of the candle stick or maybe the length of them or the distance they have from the BB1 upper or lower band can make a difference. In one you articles you mentioned “right below the BB1 upper band, or right above BB1 lower band. I wanted to know what exactly you mean by the word “right” because you just mentioned it in one place and not in the other sentence’s or articles. Thanks a lot for your help and support and your amazing information.

  110. Phil Gear says:

    Hi Kamel.
    I’m a newbie to LuckScout and have read your article several times. I just want to say thankyou for posting this article because It will help me start making profitable trades. Up until now In have only made small profits and mostly losses trying to trade the shorter time frames. Thanks again and keep posting. Phil.

  111. Baker Dow says:

    Hi Kamel and Chris,

    Is it possible to use the DBB Standard deviation 1 for BB breakout with candlestick patterns, because I’ve seen some setups form correctly, and it seems nowadays on many daily charts, standard deviation 2 is hard for the market to reach.
    Could this be due to algorithmic trading killing market inefficiencies?

    Thanks

    • Baker,

      As I explained once, you can use BB1 and locate the strong candlestick signals. There are so many traders who do it.

      > Could this be due to algorithmic trading killing market inefficiencies?

      No. Algorithmic trading cannot affect market. Please kindly share a screenshot as an example, so that I can see what you are talking about exactly.

  112. Baker Dow says:

    Also I am worried that the the daily candlesticks with my broker may affect my trades.

    My broker is CM UK. It seems their candlesticks close at 1am GMT+1, which is currently New York summertime/EST+1 8pm instead of 5pm, and it seems to my eyes that your charts are slightly different from mine.

    Could you give me advice on this?
    Pardon for the many questions, I just registered an account and bursting with questions
    Thanks a lot again!

    • Baker,

      Yes, the daily candlestick close time can make the candlesticks shapes different. In most of my screenshots I use the FxPro charts. You can do the same for your analysis, and then use your broker platform only to take the positions.

  113. badrinath devdhar says:

    Thank you sir for this new strategy of trading.
    I would like to know how to add second set of BB to my screen . I tried but could not succed. Pls. guide.

    Thanks and regards

  114. DAN M says:

    Thank you so much sir Kamel, you have solved me alot of headache especially in determining the target and stop loss.

  115. Muhammad Hassan` says:

    Hello Chris Sir and Kamel/
    I want to ask that, as Chris sir’s trading system BB with with deviation 2,,,,you have told many timee that, strong candle stick patterns like Dark Cloud cover , piercing line and both Engulfing bear and bullish, with break out BUB or BLB breakouts, makes strong setup,,,,but i want wo ask that,,,,as i find that as kamels DBB ( deviation 1) there is also i find many times as well as i trades these setups, that strong candlestick patterns, Dark cloud ( both bearish and bullish, and Engulfing ( both bearish and Bullish) that breakout the DBuB1,,,( bellow BuB2 in case of short trade setup and also DBLB1 ( above the BLB2),,,,as strong setups these type also goes for atlest 2to3 candles or days as same trades,,,,short and long,,,,,,,,,does this work or can i take this type of setups,,,with proper SL and TP..?

  116. SIDDHESH KUNDAIKAR says:

    Hi

    How to use this strategy in Amibroker software ? In Amibroker we have parameters like Price Field, Period & Width.

  117. Juhl Vanbryce says:

    Can the DBB strategy be profitable using 4 hour charts? Or is it better to stick to Daily and longer time frames with this strategy?

    Thanks,

    Juhl

  118. Chris Gatsby says:

    Hello Chris,

    I would like to know when you mentioned you check only 15 minutes a day to check for a setup, does that mean you are only looking for (1st candlestick and 2nd candlestick close below Upper BB1 and 3rd candlestick close above Upper BB1) setup only? or is there any other form of setup? I hope you understand my question.

  119. Anton Praja says:

    Chris or Kamel, i just found this DBB set up on EURAUD daily chart. The 3rd candle was 2 days ago, but i think the price still ok to take position. I just want u guys too take a look the chart and confirm for thia signal, cause im new for this DBB system. Thx

  120. Md Shafiqul Islam says:

    Hello Anton Praja I have opened position on this currency pair on 10.23.2015 based on DBB strategy. I am still still holding the position.

  121. lal reghu says:

    Hi Kamel.

    I have 2 doubts to clarify
    1. Does the color of the candle(candle no.1) matter?.
    2. Is this strategy valid if candle 2 and 3 touches BB1 bottom line and BB2 bottom line

    Regds
    lal

  122. piotr wnuczek says:

    Hi
    You guys make a huge effort to teach us everything you know.
    Thank you very much.

  123. Joyce Ditshego says:

    Hallo Kamel and Chris. Its good to know you. I love LuckScout

  124. michelle cathy says:

    hi chris
    the 2 indicators you give for this system is not working, please help
    thanks

  125. Ivan Todorov says:

    That method seems interesting, I will give it a try. Sorry if there has been already an answer, but is the strategy suitable with CFD and metals charts? And if no, why? Thanks a lot.

  126. drsa1970 says:

    Dear Chris,So thankful for your hard work you have done so far to improve our trading skills.
    Special thanks to Kamel for this simple and effective DBB strategy.
    Thank you for back test Report of this strategy by JojoW .

  127. Muhammad Afzal says:

    HI Kamel
    today 2016-03-22,GBP/USD candlestick #1 and #2 are formed below BB1 upper band and above middle band too, and 3rd is closed above BB1 upper band still prices are going down. what is that? is that my understanding problem or it is really happening

  128. Muhammad Afzal says:

    HI Kamel
    Another confusion. After 14th March, there was a selling signals but after Candle stick #3, which was closed down BB1 lower band, prices startd going up all of a sudden. can you please teach me I am brand new in the currency trade.
    thanks

  129. RIEAD RANA says:

    # how much news effect in daily chart with this strategy ??
    # whats condition before news ??

  130. Ronald Van Looy says:

    Hi Kamel and Chris. Found the LuckScout website only yesterday and am in the process of reading through your articles. Very interesting stuff, but I’m a bit confused by the two different types of ‘double bollinger bands (DBB)’ trading approaches. Chris’ strategy in a nutshell: “The strong candlestick pattern with a strong Bollinger Band breakout have to be formed on an “exhausted” market, not on a too strong trending market.” On the other hand, the DBB strategy that Kamel recommends ‘trend continuation’ setups (my interpretation). I don’t see how to combine these two different approaches to trading (‘trend continuation’ versus ‘Breakout/trend reversal’). Thanks in advance.

  131. Juan Nicasio says:

    How do I set up the alerts indicator? I have downloaded and installed both indicators but I can’t find how to set the alerts. It’s not available in my indicators section. Someone please help .. if you know how to set the arts up please email me at [email protected] … Thank you very much for everything!

  132. inderjeet singh says:

    veryyyyy great artical Chris or Kamel, god bless u

  133. inderjeet singh says:

    can i ask u one thing chris if i take 2 positions when DBB system crate signal. these 2 positions have same stop loss set on third candlestick. low or high price one position target and stop loss is same and second position close when strong reversal setup forms, i want ask u then i will in profit if i trade like this ? and sir my english is not good so plz sorry sir and thanks

  134. Richard Winterberg says:

    Do you always set a market order when an eligible candle closes, or is a pending order an equally plausible entry? If so, would a pending order have to be cancelled if not triggered within one bar?

    • I don’t set pending orders.

      > If so, would a pending order have to be cancelled if not triggered within one bar?

      It depends. Sometimes a bar is too small and doesn’t touch the pending order. So you will have to give more time to the market to hit the order.

  135. allways win says:

    Dear Mr.kamel,

    In yr DBB strategy, while entry is purely based on BB1, what is the role played by BB2

    Thanks for yr time.

  136. Charles Booth says:

    My brother uses the DBB system and seems to like it. Great explanation brother thanks!

  137. Regina Geffin says:

    Thank you Kemal for the article. Although I have read before, still this is invaluable article to remind me.

  138. Kwena Morolo says:

    Hey Chris

    I wanted to find out if you use DBB as well?

  139. tina says:

    is there any indicator to support this methode, i found unsual in EUR USD, here i send the screenshot, if we found like that what should we do to anticipate it ?
    http://i68.tinypic.com/qouelh.jpg

    [IMG]http://i68.tinypic.com/qouelh.jpg[/IMG]

  140. Ronald says:

    Hi, I am new here (September, 2017) and I’m already addicted the articles on here.
    I like that you guys are simple and realistic. I look forward to many more great articles.

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