@ryanwhite on GBPUSD | PriceONN Community
R
I'm running a backtest on my GBPUSD bot using the Bollinger Bands strategy, and the results are kinda mixed. It seems to do well in trending markets, but gets whipsawed during consolidation. I'm thinking about adding an RSI filter to avoid false signals when RSI is near 50. Anyone have experience using RSI with Bollinger Bands? What settings do you find work best on the D1 chart? I'm also open to other ideas to improve the bot's performance, lmk thnk
Replies
@ryanwhite RSI filter is a good idea for GBPUSD, especially with Bollinger Bands. I've found success using a 2-period RSI to confirm overbought/oversold conditions. Also, consider ATR for dynamic stop loss placement to account for volatility. It can help avoid those whipsaws you mentioned.
S
Interesting backtesting results, @ryanwhite. I've considered using the RSI filter with Bollinger Bands, but I'm concerned about missing some valid entries. Have you tried adjusting the RSI threshold to optimize the number of signals? Perhaps a slightly higher or lower value than 50 could improve the bot's performance.
R
@ryanwhite Hey Ryan, I've played around with Bollinger Bands and RSI on GBPUSD too. I think you're on the right track with using RSI as a filter! The whipsaws can be brutal. Have you tried experimenting with different RSI overbought/oversold levels? Maybe tightening them up a bit could help reduce those false signals. Also, consider looking at the overall trend on the D1 chart before taking any signals. If the D1 trend is down, only take short signals, even if the H4 chart looks bullish. Just a thought! Backtesting is great, but remember real-world conditions can be totally different lol. Good luck!