There are multiple reasons to enter a trade:
- A signal from the BollingerBand website
- Interpretation of the price chart and indicators
- A trading system signal
- Recommendation from a trusted trader
- Press coverage
- And many more...
While there are many reasons to open a position, each with a variable chance of success, ultimately a profitable trade rests on the price when the position is closed, regardless of the reason the trade was entered.
BB-Stops is a system created by John Bollinger to help you to decide when to close a position.
BBStops are an adaptation of the stops in Welles Wilder's Parabolic Price Time System. These stops increment both with the passage of time and the progress of the trade.
They start at an interval above/below the entry day as a function of Bollinger Envelopes and then progress automatically as time passes and as price changes.
If the entry is a buy, BBStops starts beneath the entry at an interval determined by the lower Bollinger Envelope calculation.
For a sell the interval is a value above the entry determined by the upper Bollinger Envelope calculation. You can select the Bollinger Envelope multiplier. The default is 1.5
View BB-Stops live on your charts:
- open the chart of a stock in your portfolio
- in the configure tab, enter the date and buy value and activate the plot of the BB-Stop level.
The STOP curve will be calculated and plotted on the chart live indicating whether to take your profits or exit and cut your losses.
BB-Stops automatic signals:
You don't need to continually check your charts to know when a BB-Stop is triggered:
- go to Portfolio section, on top menu
- enter the buy data (date/value) of the stocks you're interested in
- Every day, at the close, the system will recalculate the new stop level and indicate the value (percentage) required until the stop is hit.
New feature coming soon:
If one or more of your stops are triggered, we'll send an automatic email! (Please make sure that your spam filter accepts our emails)
BB-Stops: Simple, powerful, and one of the many useful features included in your Bollinger Bands subscription.