If like me you had not heard of STARC (Stoller Average Range Channels) Bands before, they are similar to the Bollinger bands. These bands will contract and expand depending on the fluctuations of the average true range (ATR). The difference between Bolliner and STARC is that STARC bands are used to determine the high probability trade rather than standard deviations of price action. Simply when price rises to the upper band a sell opportunity is indicated and when the price reaches the lower band a buy opportunity is indicated.
Basically STARC is created by two bands around a user defined SMA, The upper band is created by adding SMA to the average true range (ATR) and the lower band is created by subtracting the ATR from the SMA. For more detailed explanation of STARC please visit http://www.investopedia.com/articles...dsChannels.asp .
When a fellow trader introduced this indicator in Nanningbob`s thread, Bluemelle and I felt that there was a good potential for a simple trading strategy based on this one indicator alone, providing this was coupled with sound money management and the famous nanningbob`s multilevel recovery process. Surprisingly not much has been written regarding STARC despite its good potential. Therefore, I have started this thread to give STARC a home in FF and I hope to attract experienced traders who have an interest in this indicator and have ideas for its utilization and automation to publish their ideas and creations for further study, improvement, development and scrutiny.
Thus far Stevehopwood and Bluemele have created EAs (Expert advisors) for STARC systems. we will be discussing these in due course. I must emphasize strongly this is very much a R&D thread for the time being and it is not suitable for new traders and live trading. I strongly advise new traders to visit NanningBob`s and SteveHopwood`s threads for proven profitable systems and EAs.
Ok, have a look at the chart below. The strategy is very simple When the price touches the upper STARC Band a Sell order is placed and when price touches the lower STARC band a buy order is placed .The settings for STARC is 5,15,1.33 (or Bluemele`s more aggressive setting of 5,15,0.88). Almost all of the rules below were suggested by Bluemele.
TP can a be a fixed value based on the ATR or the middle band (although TP of middle band would mean you would lose out on the big runs).
SL= distance from outer band to middle band DIVIDED by 2 or a fixed value based on the ATR.
If loss is taken, suspend suspend new trades until midpoint is reached. This will ensure that you will not keep going into big trend. Usually, you will have 1 to 2 losses then it will retrace on a big move, and with this, it will then hit the midpoint in the near future. If it does it on the same bar, then it was just a news spike and it will most likely come back to the usual price. (a more conservative option is suspend till the opposite band is reached).
if trade loses, then reenter on same bar by 'x' (most likely % of ATR, a couple of pips) then reenter and take to midpoint for profit hopefully. Chances are that it won't do a loss twice.
Option of BE @ + x pips using STEVE HOPWOOD`s mptm plus trailing stop to start at x% (usually 50%) of distance between entry and midpoint that will trail by profit of x% (usually 20% to 50% of total move, so if it is up 10 pips, TS=2 or TS =5 respectively. You can turn Trailing Stop off, and it will do TP @ midpoint.
Please see my post of 10/11 October for STARC BOLLINGER CROSS...
11th October added couple of indicators for BB-STARC Cross
Basically STARC is created by two bands around a user defined SMA, The upper band is created by adding SMA to the average true range (ATR) and the lower band is created by subtracting the ATR from the SMA. For more detailed explanation of STARC please visit http://www.investopedia.com/articles...dsChannels.asp .
When a fellow trader introduced this indicator in Nanningbob`s thread, Bluemelle and I felt that there was a good potential for a simple trading strategy based on this one indicator alone, providing this was coupled with sound money management and the famous nanningbob`s multilevel recovery process. Surprisingly not much has been written regarding STARC despite its good potential. Therefore, I have started this thread to give STARC a home in FF and I hope to attract experienced traders who have an interest in this indicator and have ideas for its utilization and automation to publish their ideas and creations for further study, improvement, development and scrutiny.
Thus far Stevehopwood and Bluemele have created EAs (Expert advisors) for STARC systems. we will be discussing these in due course. I must emphasize strongly this is very much a R&D thread for the time being and it is not suitable for new traders and live trading. I strongly advise new traders to visit NanningBob`s and SteveHopwood`s threads for proven profitable systems and EAs.
Ok, have a look at the chart below. The strategy is very simple When the price touches the upper STARC Band a Sell order is placed and when price touches the lower STARC band a buy order is placed .The settings for STARC is 5,15,1.33 (or Bluemele`s more aggressive setting of 5,15,0.88). Almost all of the rules below were suggested by Bluemele.
TP can a be a fixed value based on the ATR or the middle band (although TP of middle band would mean you would lose out on the big runs).
SL= distance from outer band to middle band DIVIDED by 2 or a fixed value based on the ATR.
If loss is taken, suspend suspend new trades until midpoint is reached. This will ensure that you will not keep going into big trend. Usually, you will have 1 to 2 losses then it will retrace on a big move, and with this, it will then hit the midpoint in the near future. If it does it on the same bar, then it was just a news spike and it will most likely come back to the usual price. (a more conservative option is suspend till the opposite band is reached).
if trade loses, then reenter on same bar by 'x' (most likely % of ATR, a couple of pips) then reenter and take to midpoint for profit hopefully. Chances are that it won't do a loss twice.
Option of BE @ + x pips using STEVE HOPWOOD`s mptm plus trailing stop to start at x% (usually 50%) of distance between entry and midpoint that will trail by profit of x% (usually 20% to 50% of total move, so if it is up 10 pips, TS=2 or TS =5 respectively. You can turn Trailing Stop off, and it will do TP @ midpoint.
Please see my post of 10/11 October for STARC BOLLINGER CROSS...
11th October added couple of indicators for BB-STARC Cross
Attached File(s)
##STARC Bands.mq4
2 KB
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4,419 downloads
BollStarc-TC.mq4
3 KB
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2,620 downloads
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Uploaded Oct 11, 2010 7:00am
BollStarc-TC_Sig.mq4
5 KB
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3,016 downloads
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Uploaded Oct 11, 2010 7:00am