How to Increase Double Bollinger Bands Trading System Success Rate

On October 25th last year (2014), a trading system named Double Bollinger Bands or DBB was introduced by Kamel (read this). This trading system is so popular and is used by so many traders on a daily basis.

The most important feature of this trading system is that it is mechanical. It means it doesn’t need any analysis and interpretation. To have a long trade setup, all you need is that the last closed candlestick to be closed above BB1 Upper Band while the previous two candlesticks should have been closed below it. To go short, the last closed candlestick had to be closed below BB1 Lower Band while the previous two candlesticks should have been closed above it.

As you see this system is 100% mechanical, and even a 7 years old kid can distinguish the trade setups.

Like all the other trading systems, this trading system causes you to lose money sometimes. In spite of this, experience shows that it has a good success rate and if you follow its rules properly, you will usually have some profit left at the end of the month. When this trading system was shared on LuckScout, some LuckScout users back-tested it. The results were really impressive, meaning that a trader can rely on this system, specially if he has started trading recently and have not become experienced enough in technical analysis and candlesticks patterns.

Since October 25th last year that I have been reading and answering your comments about this system, I have found out that there are a few things that you can do to increase your success rate in trading the DBB system. Although this system is supposed to be 100% mechanical, but your success rate will dramatically go up if you consider a few small technical and non-technical factors:

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1. Learn the System Rules Properly:

As far as I know, many of you still don’t know how this trading system works and how long and short trade setups form. Many a times I hear that some of you lose money after taking a position based on DBB system, but when I check I see that no trade setup was formed at all. This is because these traders still don’t know what the DBB system trading rules are and how the DBB trade setups form.

So, if you like to follow this system, the first and most important thing you have to do is that you make sure that you have understood the rules properly and precisely and you are able to distinguish the setups, otherwise you will enter the market when there is no setup at all.

I am not going to explain this system’s rules here in this post, because it is already explained in details in some other articles. Please refer to those articles and read them carefully: Double Bollinger Bands Strategy To Trade Forex

2. Bollinger Middle Band’s Role:

Bollinger Middle Band usually works as a strong support/resistance in short/long positions. It means if you go long (you buy) while the price is still below Bollinger Middle Band, chance are it makes the price bounce down and hit your stop loss. It is the same when you go short.

This rule is true in all different trading system.

In DBB system, a trade setup forms when Bollinger Middle Band is already broken. I mean when candlestick #3 closes above BB1 Upper Band to form a long trade setup, either this candlestick or one of the previous ones has already closed above Bollinger Middle Band. So we don’t have to be worried about the price to be stopped from going up by this moving average (Bollinger Middle Band is a 20 Simple Moving Average).

However, there is another thing that we have to care about. It is the position of candlestick #1 and #2 with Bollinger Middle Band. Experience shows that in long trade setups that candlesticks #1 and #2 are closed above Bollinger Middle Band, price goes up better, and so these trade setups have a higher success rate. This is true that in order to have a long trade setup, candlesticks #1 and #2 have to be closed below BB1 Upper Band and candlestick #3 has to be closed above it. However, the trade setup works better and makes the price go up stronger if candlesticks #1 and #2 close above Bollinger Middle Band and below BB1 Upper Band (they close between Bollinger Middle Band and BB1 Upper Band).

Also, the closer the candlesticks #1 and #2 close prices to BB1 Upper Band, the stronger is the trade setup. It means it is better the candlesticks #1 and #2 close prices not to be too far from BB1 Upper Band.

Sometimes, candlesticks #1 and #2 close as bearish candlesticks either below Bollinger Middle Band or a little above it. Or one of them closes below Bollinger Middle Band and the other one above it. And suddenly candlestick #3 goes up and closes above BB1 Upper Band, and so a long trade setup forms. This cannot be a strong long trade setup, because when the last 3 candlesticks close like this, it means the market is choppy and unstable. It means bulls have not taken the full control yet, and so it is possible that the next candlestick goes down and hits the stop loss.

On the below screenshot I am showing you two long trade setups that are formed under the conditions I explained above (specially the left one). As you see in the left trade setup, candlesticks #1 and #2 are closed above Bollinger Middle Band (the dashed line) and so close to BB1 Upper Band. This is the example of a good and typical long trade setup.

The second one (the one at right) is also good. The problem is that candlestick #1 is bearish. In spite of this, its lower shadow reflects the bullish pressure which is good. It is still a good long trade setup, but the left one is much better.

Whenever you locate a long trade setup, compare it to the left trade setup on the below screenshot and take it if they look similar.

Here is what I call a bad long trade setup (below). It is still a trade setup, but it is not a good one. Candlesticks #1 and #2 are closed almost below Bollinger Middle Band which means bears are still strong. As you see, the price doesn’t go up strongly when candlestick #3 closes. It goes up only for 2 small candlesticks and then it goes down strongly.

The other thing is that candlestick #3 closed not only above BB1 but also above BB2 Upper Band. It means this candlestick made the market a little overbought and so a bearish counter-attack was possible:

Here is two other bad long trade setups. Now you know why they are “bad”:

It is the same with short trade setups. It is better to have candlesticks #1 and #2 formed below Bollinger Middle Band and above BB1 Lower Band when a short position forms. Also the closer the candlesticks #1 and #2 close prices to the BB1 Lower Band, the stronger the setup.

Everything I explained about long trade setups has to be considered for short trade setups too. Just the direction is opposite.

Here is a good and typical short trade setup. As you see, candlesticks #1 and #2 closed above BB1 Lower Band. Their close prices are close to BB1 Lower Band and far away from Bollinger Middle Band.

The below screenshot shows two bad short trade setups. With the first one at the left, candlestick #1 is closed with a long lower shadow above Bollinger Middle Band. It means bulls still have the control. With the second trade setup (right), candlesticks #1 and #2 are both bullish which is not good for a short trade setup:

Here is another bad short trade setup (below). Candlesticks #1 and #2 are closed right below Bollinger Middle Band. Besides, one of them is bearish and the other one bullish. They have long lower shadows too. These are all the signals indicating the bulls strength:

 3. Follow the Trend:

Going against strong trends has a higher risk, even when the trade setup is too strong. It is recommended to avoid the DBB trade setups when they are against the trends. Conversely, agreeable trade setups usually have much better results:

4. Learn Technical Analysis If You Can:

Technical analysis always help you take the setups with more confidence. A DBB short trade setup formed after a support breakout, or a support breakout formed after a DBB short trade setup are much better to take, both for DBB and breakout traders:


Although DBB is a mechanical system that doesn’t need any analysis and interpretation, it would be great if you learn some analysis and use it in trading this system. At least, you can consider the three candlesticks close prices with more caution, and differentiate the good and bad setups from each other. It helps you have a much higher success rate.

Above all, before taking any positions based on any trading system, you’d better to learn the system properly first.

Published by

LuckScout Team

"Whether you think you can, or you think you cannot, you are right." - Henry Ford


  1. Mentor!
    You are indeed an instructor. You are carrying us on your wings like the mother eagle. Checking on us every now and then to see how we are progressing and also straightening us.

    Thanks a lot.

    1. Right comment on. I want to join with you.

      After fighting for 4 years on war, I’ve learn a little that “waiting is the main weapon to win the riot.”
      When I decided ” It is the best opportunity.” But NO, I was wrong, the super best opportunity come just a lot of moment later.
      Now I’ve found a real learning opportunity from that how to wait for the final opportunity.

      unstoppable thanks for for his unparallel article.

  2. Boy I needed this article so badly. Great article once again and helps to give a better idea of how to utilise the double Bollinger band strategy. Thank you!

  3. Hi,

    even if DBB is supposed to be mechanical, your examples and comparisons in this article are great in helping us understand the difference between setups.

    Pointing out the not typical setups is very good for educational purposes!

    Thank you for writing this article and please keep on giving us many examples and showing us also the bad setups and what not to do!

  4. Hi, thank you for these very clearly described DBB fine tuning techniques. Regarding the long DBB trade that you thought most promising (July 26-28, 2014), the daily movements are quite close together up to and including the buy point (#3). What is the best way to identify the more risky and less risky stop loss positions? Say, 10 pips below the lowest point of the #1 candlestick?

  5. hi.
    it is very good you talk more about DBB system frequently. it help us to be more familiar with this system. thanks a lot for your effort and helps.
    in usd/jpy screenshot left set up based on DBB system, you told it is better than the right one. but after some moving up, the price went down and the stop loss will hit. if it is true , what is your reason that the left set up is better than the right one.
    thanks for your explanation.

    1. 1. We don’t know what will happen after a setup forms. All we can do is that we take the best setups. Although the left setup went down, but majority of the setups that have the same condition work much better. Almost like the AUD/CAD setup (here).

      2. I think the first would hit the stop loss at breakeven. So it couldn’t cause any loss.

  6. Dear
    I sent you the 5th version of LuckScout indicator.
    I added this article points to indicator for calculating DDB setups.
    Please check it.
    I have a question too. can we consider Trend direction to choose better ddb setups?

  7. Hi

    Thanks for that. It definitely clears up why people are getting stopped out on this system. I think in previous articles the significance of the middle bollinger band wasn’t explained properly but this had made the system more crystal clear.

    I didn’t use it before because it didn’t look that reliable to me but now I can see the strong setups would be far more successful.


  8. Good day,
    Since you introduced this system of trading, I have been using it and have been successful with it. The last trade I had on EURJPY fetched me about 450pips. I will continue to follow this system and try to learn the technical analysis, and as you taught us, I like keeping it simple.

    Thank you so much for the good work you are doing out here. I really appreciate.

  9. Hi,
    Thanks for another great article 🙂

    I would like to ask, there is a short trade setup formed on the very first picture (where are the good long trade setups shown). The candlestick #1 is exactly on the 15th July 2014 and #3 is that long bearish candlestick. Would you consider this setup as a short trade setup that time? If not, why?

    Thank you for the answer.
    Good luck!

    1. I would say short trade can’t be consider as good setup because 1and 2 CS closed to close BMB and 3 is to long so market is oversold

  10. Thank you. This helped enourmously!
    Thank you for everything you do here.
    My hope is you could more describe exit strategies, especially around real life examples like you and Kamel did on Gbp/chf. I go out early or late and I do not really have a good feeling what to look at (like with entry, where I feel more confident due to your many advises).

    One thing I am struggling with is how to work with 3xSL or even 5xSL profit target. Very often I get new signals (or so I think) far before I get there, especially if I take the safe SL.

    Thank you.

  11. Hi.
    There is some error type in article: “More About Double Bollinger Bands Trading Strategy”. in the last text end line i think the sentences should be fix as below:
    “Candlestick #1 closed right on BB1 upper band, and candlestick #2 closed below it. Candlestick #3 ….

  12. Hi
    Please fix the error type in article:
    “When a DBB Trade Setup Is Supported by another Agreeable Trade Setup”
    In the end line of GBP/CAD, the Candlestick #3……. Should be Candlestick #1 ….
    of course this is not a typical short trade set up in DBB system. so, this DBB Trade Setup Is not Supported by another Agreeable Trade Setup. did i understand correctly?

  13. Hi, your sharing must be appreciated! I notice that you are a commercial member on factory. Does it mean that you have to pay for posting on FF? It is also noticeable that this site contains pure knowledge, no selling or anything relevant with generating money through website. That is, FF should not charge you anything! So I am kind of curious about what kind of business you are engaging with FF. If you are a mutual fund manager, do you accept clients, like me, through web?

  14. Hi,
    Thanks for the wonderful sharing of knowledge and many I as I can see from the posts are counting their lucky stars for stumbling upon your website. You’re great and I wish u well.


  15. Yes first of all, I Was confused about using DBB but now I again try to learn properly, I think DBB work 50 percent and candlestick pattern work 50 percent, then both can give us 100 percent result .

  16. hi,
    you have a lot of strategy here, that’s helping me so much.
    but between bollinger band and dbb, which one is the best?

    thank you

    1. Hi John,

      It depends more on what kind of trader you are. Are you willing to wait purely on strong setup for bollinger bands with candlesticks? If you have missed previous 100 setups, you might need to wait weeks or even months for the next. Like I waited almost 2 months until the recent gbp/chf 100 setup but the market now goes against the setup

    1. Sometimes a setup causes the range to be broken. Sometimes a market ranges for a long time, and trade setups return weak results. When the market is ranging we’d better to move the stop loss to breakeven sooner when the position goes to profit.

  17. Hello i have to say just two words about you and your website, you are the bestesttttttt helper motivator you don’t how much prayers wo do when you give us such time and articles i love your site i love your strategies you are the best best nothing else i am a new trader and you motivated me.
    God bless you

  18. Dear,

    Based on DBB system, there could possibly be a long set up for AUDCAD (if next day’s candle closes above DBB1 +1 S.D) and a long setup for EURAUD (if next day’s candle closes above DBB1 +1 S.D).

    However, if one were to trade both positions, it would be as good as long EURCAD which is as well waiting for confirmation for a too strong SHORT set up.

    How then should we approach this?

  19. In the chart in section 3 (“follow the trend”), how would you interpret the setup with candle #3 just before 13 December? Is the #1 candle problematic? Does it close too close to the middle band? Is the fact that it opens below the middle band a problem?

    1. It is not a bad setup. Candlesticks #1 and #2 are both bullish and #2 is closed in a good place. It is a good setup indeed.

      #1 opened below BMB, but it is good that it closed above it and #2 did a good job that covered #1 weakness.

  20. The last picture in the article is supposed to show an example of TA and DBB supporting each other, but isn’t in this case the SL hit by the “#4” candle? And there are no other opportunities for entry for a long time after that, so most of the trend is unfortunately missed. Is there any way to avoid this?

    1. It would hit the stop loss if the stop loss was set at the middle of candlestick #1, but it would not if stop loss was set above the high price of candlestick #1.

    2. I see, but why would you set SL above the high of candle #1? I thought the rule was to put it at the high price of candle #3. Although i can see how that is a problem if candle #3 is very small (SL would be too tight). Does that mean we have some freedom in placing the SL? I did read in the original article that SL can be made smaller if candle #3 is very large. So is the opposite true as well?

    3. There is no special rule to set the stop loss and target orders. We set them where experience tells us that it is a good place. Above the high price of candlestick that forms the signal is the best place.

    4. “There is no special rule to set the stop loss and target orders.”

      That statement seems to contradict the whole idea of a mechanical system, which should be entirely based on rules. Just to be clear, i was referring to the DBB system and as far as i’ve understood, the SL for shorts goes at the high of candle #3, which would have been stopped out in this case (last picture in the article).

      I’m planning to learn your own system as well, but for now i’m focusing on the DBB system.

    5. There is no special technical and scientific rule for stop loss. We just decided to place it where it looks better according to our experiences. Of course there is one general rule that says the stop loss has to be placed at the level that it gets hit only when we have chosen a completely wrong direction for our position.

  21. Yesterday I analysed a whole bunch of charts of the past two years after reading the first article on DBB. After the analysis, I came to the conclusion that (almost always) the 2xSL as TP would have worked (with SL being low/high of the #3), but in a few cases only 1xSL would have yieled success…I drew up some vague ideas for myself of when only 1xSL can be hoped for (in most cases that would still be a nice bit of profit) and then saw this article which largely confirms those ideas! The trades described here as “bad trade setups” are similar to those I identified as “only” 1xSL candidates and the reasons for them being bad match my suspicions. This gives me a little bit more confidence that I am starting to understand the system properly! Thanks a lot for all you guys do here to help us novices and especially for your focus on keeping things simple – there is no lack of resources on the Internet if one wants to dive into the full complicatedness of it all, but LuckScout is unparalleled in keeping it simple and easy to understand!

  22. Hi,

    What you’ve noticed so far, are the setup are stronger when the 3 candles are bullish for a long and bearish for a short or doesn’t matter.

    Thank you very much.

  23. As always…. This article is an awesome addition to the previous DBB article’s….You’re the best!

    Thank you for all you do & most of all….for believing in all of us…:)

  24. just read the latest lesson trying to understand and interpret correctly hoping to be able to use it to advantage. i will read it again and again until it makes sense and not give up. i use cm and mt4 for demo trades still making losing trades reviewing my trades to identify strong setups. any suggestions to help me improve will be appreciated. len

  25. Hi, how can I do if I want to trade DBB and your main system together? So, since I cannot use the double bands for your system, can I check out is there is a strong reversal pattern first, and if I don’t find any, add the double bands and check out if there is some trade setup? So that I can follow reversal and continuation signals at the same time? Thanks in advance for your help.

    1. You can have each system on two different profiles on MT4 and load each profile whenever you want to locate a setup through each system. These two systems have nothing to do with each other. So you have to trade them completely independent from each other.

  26. It all seems so clear now. Thanks. You keep us from making the same mistakes time and again. Much appreciated. Thank you.

  27. What do you think of using HeikenAshi candles for this strategy, or does it give too many false readings?

  28. I am currently testing DBB.. One doubt, is it ok setting 1:2? Or could I go for 1:3 ?

    Should we advance our SL to break even once the position reached x1 SL in our favor?

    Thank you, and Kamel.

    1. Manuel,

      There is no precise answer to these questions. DBB is a mechanical system and a trade setup can be the beginning of a small movement or a strong trend.

    2. Will have to make my own deductions then, depending on the setup! Thank you for your answer.

  29. hello,
    just read this article again about dbb and drew a diagram to better understand what you are teaching.drawing the simple diagram gives a better picture of what you are explaining. this might help some of the other novices who have trouble understanding the verbal demo and makes your explanation much more effective. hope this helps. len

  30. as you mentioned in previous posts that only bollinger middle band which is twenty works. you mean only this single or to compare it with other higher period moving average? ample 40 … 50 ,?

  31. Hi
    I found many of my answers about DBB strategy in this article.I am truly amazed like other members with the way you explain everything.Using the same old basics you always teach us like Bullish or bearish pressure,considering the trend, and technical analysis in DBB, makes this strategy a real respectful one.
    Thanks a lot.

  32. Sorry to give a differing opinion from the cult like replies here, from people who have had one trade go their way, BUT from my back testing this system will lose you money.
    Initially you said that this is a mechanical system. Trade it mechanically and you will lose money. If such a system were possible the banks would just set up computers to trade your system mechanically, investing billions of dollars into it. There would be no reason to raise money with loans anymore.
    This of course is ridiculous and so is your claim that this is a mechanical PROFITABLE system.
    You have an audience of newbies that believe anything. Your claim that you can increase profits by only taking certain trades, also does not make the system any more profitable. Even the guy that supposedly discovered this golden goose is no where to be seen anymore. Very dodgy!
    This system is a dud and will lose you money. AVOID!

    1. gaz man,

      This is true. This system cannot be profitable all the time. I personally don’t trade these kinds of mechanical systems. However, it is introduced here just because many traders like to know about this so called double BB system. We never said that it is 100% profitable and we never guaranteed anything about it.

    2. I have recently come back to this system and found it provides excellent entries. There are many ways to increase the profitability of the system, mostly technical facts that can be added together to create a scoring probability system.

      Obviously, this isnt 100% and not all of it can be mechanical (yet) but there are many rules that increase the chances of the trade working out.

      Personally, I have found the third candle does not need to open above the bollinger middle, and I consider this optional. in fact, there are many successful trades which start with a strong 3rd candle breaking above the middle band, then the second holding between middle and BB1 upper, then the current candle breaking BB1 upper but not BB2 upper.

      Also, the momentum of the bollinger must be taken into consideration, if the bollinger middle band is trending down, taking a long trade against this causes problems, not always but often enough that I score this negatively.

      Also, if the active height (distance between low of candle 3 and close of current candle) is much less than the recent active height (last X candles), this is also negative.

      Also, I score the current Monthly, weekly and daily trends with 2 points each, plus an additional point if all 3 are in agreement. Giving 7 points. If the trade is not in agreement with this direction, it is ignored.

      If both candles 3 and 2 are bullish then a bearish current candle is not a valid signal and is ignored. (and vice versa)

      If the bollinger is squeezing, the setup is ignored.

      When you add all of these facts together, a decent probability can be made and using good analysis. The trades can be taken with some confidence.

  33. P.s. It is amazing that no one has noticed yet that, the second BB with deviation of 2 is not needed. As such this is not a double BB strategy at all. Just goes to show how switched on the people in the forum are!

    1. Many traders have noticed that and are using the Dev(1) indicator only.

      The reason of having the regular BB is for following the maximum deviation from the middle band, to have a better idea about take profit orders.

    2. Actually, I often add a 1.5 deviation as well. If a successful trade starts to reverse and closes beneath this then I take an early exit.

  34. 31st October 2015
    Thanks for a very revealing and educative article of trading.
    After studying your article I want to apply the information to start a DEMO account.
    I looked at the various pairs on today’s daily chart and spotted that the most likely pair that may meet the specifications that you had mentioned is USD /CAD pair.

    Can I start a trade on the USD /CAD pair on Monday 2nd November 2015 morning with the following parameters.
    Opening trade 1.30700 / Stop loss 1.30950 ( -25 ) and take profit 1.30200 ( + 50) The present closing level on chart is 1.30752

    This is my first attempt at using your simple trading method.

    Sorry for such a small query.

    This would help me to upgrade by confidence level.

    Looking forward to your advise.

  35. I’m a novice trader and still not skilled at finding the best trade set ups using your strategy. I’m starting to become discouraged. I do well with the DBB Strategy but there haven’t been many DBB set ups lately. Do you think a trader could be very profitable just sticking to DBB strategy only, should i focus on just mastering the DBB strategy?

    I often read the article on Edwards success but even after reading Kamel’s articles, I don’t fully understand Kamel’s strategy. I like that he takes morevtradevset ups on average than you, I don’t’ have the patience you have and I feel alone and lost but I know that trading is the answer to financial freedom and so I won’t give up.



  36. LuckScout is the bible of. It’s like a university.
    The best part, you share this knowledge for free.

    I am new to and in the span of 3 weeks, I learned so much.

    I learned currency pairs, pip size computation, money management, simple trading systems, etc.

    I already have my demo account at $500.

    Next goal is to consistently grow it for 6 months using all the trading system from LuckScout.

    When I become a full time investor 2 years from now, I want to give back to the LuckScout community!

    you are heaven sent!

    Rey from Philippines
    It’s 4 am here when the daily candlestick closes in NY.

  37. So I’m a brand new trader still trading paper money. In reading about the DBB strategy I decided to combine with the Ichimoku Cloud trading strategy that I learned. Basically I apply the DBB rules but only take long trades above the Ichimoku cloud and short trades below. I set my stop loss at the close of a non-doji candlestick going in the opposite direction. I back tested this strategy for only the past three months and the results seem pretty good. In reading the articles on DBB it was mentioned that the backtesting that others had conducted produced impressive results. My question is whether my backtesting seems to be in line with what other traders have come up with? Please let me know.

    Here’s what my results yielded:


    PIP Profit/Loss by month (cumulative results for all pairs):
    January: 4411
    February: 3476
    March: 1407
    April: 2846

    Number of trades:
    January: 12
    February: 25
    March: 20
    April (MTD): 16

  38. Hi,

    I have read all your posts on this DBB strategy and found it to be very interesting. I am very new to and wonder how do you determine when to take a long or short position, to prevent trading in a counter-direction.

  39. How this system can be incorporated with BB squeeze & expansion strategy? if we consider resistance & support ?

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