Here are the basics, as I understand them, of this strategy.
Bankers Close Basics
Four things you need:
1) Closes outside bands
2) RSI above 70 or below 30
3) Apiary Pivot Print
4) Strong move – SERIOUSLY! (I’ve sent messages to ask for clarification on this point.)
Lessons learned: Timing is critical. I’ve been early in the past and stopped out for large losses. Confidence in the pattern is helpful, as I bought on the way up with too much confidence and had little faith in a strategy that has burned me in the past, so my position size on the retrace down to mid-Bollinger-Band was 1/10th that of the upside. Meek BDT still wins here, though.
With this trade, I had only past experience and timing to augment the three out of four basics listed above. In other words, you may not always get the RSI suggested by the rules of this strategy. Past experience led me to believe the price would rise from the last minor pivot low and eventually eclipse the last minor pivot high. Again, clarity is needed here, as I cannot be sure the documentation of this strategy mentions major or minor pivots – time for a re-reading of that document… Click on any image below to expand it.
As you’ll see, I was buying up to the top, expecting the price to rise and loop around the upper pivot (Fibs are there as a kind of guideline, I was buying primarily between the 38.2 and 23.6 levels.)
Check the orders history image below to see all the prices (mostly) between those points. I’m not sure how I managed a couple of sell orders on the way up, but now it seems obvious (by position size – 0.10 on the way up and 0.01 coming down) that I had a lot more confidence in the uptrend than I did in the drop to the mid-band of the Bollinger Bands.
The title of this post and close examination of the name of the account I’m trading
– “Bankers Killed” – so named because I’ve lost on this strategy so often. Better now…
Here is a better look at the list of orders. When I’m better at this, I’ll plot them on the chart, like some of our instructors do. Until then, try to imagine what I was thinking from the bottom to the top and back down again! Next time I try this, I’m going to record my screen and a voice-over, so I can fully capture what I’m thinking and feeling through the entire process. Note those last two trades were open for 53 seconds and 73 seconds, respectively. The profit differential between those two and the rest of the trades illustrates the cost of a lack of confidence.
Fortune favors the bold!
You are welcome to send comments to me at firstname.lastname@example.org – All feedback, including sharp criticism, is welcome! Thanks in advance for your help.