A High Performing Hilega Milega +Double Bollinger Band Trading Strategy
NK Sir, popularly known as Nitish Baba among his students, is one of the finest trading minds who has his unique inimitable strategies. And the best part is that he is generous enough to share his trading secrets and also mentor fellow traders without charging any money. I too have developed this strategy based on the hilega milega foundation and added another double Bollinger band to make a powerful trading system.
What is Hilega-Milega Trading System
- Choose RSI Indicator.
- Change the parameters to 50-50 instead of 20-80. That means buy above RSI 50 and Sell below 50.
- Choose 9 Days instead of default 14 days.
- Add 9 Days Volume Weighted Moving Average indicator.
- Add 3 Days SMA indicator.
How to Use the Hilega-Milega System
- Always look for BUY opportunities when RSI is above 50. i.e. it’s in the green zone.
- Look for SELL opportunities when RSI is below 50. i.e. it’s in the red zone.
- When the 21-day VMA line is below Price (below green shaded area), there is a high probability that the price will go up.
- Price will become choppy or fall when the VMA line goes above the shaded part known as the Price area. It means the price will correct a little and then will go up and the overall trend is still up.
- Vice versa also holds true. When the VMA line is above the Red shaded prat, known as Price Area, the price will keep falling.
- The price will stop falling when the VMA line is below the shaded price part.
- Always keep in mind that Price always follows the higher timeframe. That means if the trend is bullish in the hourly timeframe, avoid taking Short trades in 15 minutes timeframe.
- If the trend is bullish in Daily Time Frame, avoid taking SELL trades in the hourly timeframe.
- The trend almost exhausts when 9 Days SMA almost touches the extreme up or down part of the Red and Green shaded part.
Adding Double Bollinger Band
Bollinger band is a popular strategy among traders. However, we will use not just one, but 2 bollinger bands.
- 20 SMA, 0.5 Standard Deviation Band
- 20 SMS, 3 Standard Deviation Band
Understanding Buy and Sell Zone
Here are buy and sell zones in DBB:
- Price above 0.5 SD Bollinger is BUY DBB Zone
- Price under 0.5 SD Bollinger is Choppiness DBB Zone
- Price below 0.5 SD Bollinger is SELL Zone
How to Trade DBB +HM Strategy
This system works very well in higher time frames. I prefer using it for at least a daily time frame and weekly for investing mode.
- Buy only when it gives the buy signal in HM (hilega milega) and DBB.
- Sell only when it gives the sell signal in both hilega milega and DBB.
Needless to say, choose highly liquid stocks ( pick from the F&O category).
Here is a graph to help you understand the concept better:
I observed that I worked quite well. Remain invested in stick till it’s in DBB Buy Zone and HM is below the price in the green area. Better use weekly timeframe or daily timeframe for investment. For positional traders, you can use hourly charts.
I hope that you will make your own effort to finetune it. I am testing it too at my side and working well. I will keep posting real trades to show how it works.
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