We have here something rather seldom - a strategy that works best in ranging conditions. How do we see that a market is ranging? Of cause using the eyes, but the robot does not have eyes. For the robot we can use the Bollinger Bands. When they are narrowing, then the condition is ranging. I have programmed some indicators which people might investigate.
The RFSqueeze
When the Bollinger Bands falls inside the bands of a Keltner Channel, then things are ranging.
The indicator can draw the channels or you can draw only the marks that shows the ranging condition.
If interested, then play around with the setting.
Attached Image (click to enlarge)
Attached Image (click to enlarge)
Attached Image (click to enlarge)
The SqueezeBBK_mtf_1
Same tool as above, but telling the state of multiple timeframes. The more timeframes are ranging, the better are the chances to have a continuing ranging condition.
One way of using it is to select the most ranging instrument in a badge to play with.
Attached Image (click to enlarge)
I have also my Bollinger Momentum tool. I will tell about that later.
All these tools have been made for other threads than this one, but I don't know if you would find them interesting.
I will share the code if a programmer want it. But first discuss if it is interesting enough to code it into the robot.
MetaTrader 4 - so many advantages.