The Bellcurve Strategy
Consistent and well-proven trading strategy. Our BellCurve trading strategy works in any market and timeframe.
The Zeiierman Story
When I first developed the BellCurve indicator, I knew I was onto something revolutionary. The day I finalized the strategy, I confidently told my mentor that this indicator was going to change my life forever. He agreed. Now, many years later, BellCurves are a foundational part of my success.
There are several key reasons for this, but the main one is my unwavering belief in this concept. I saw its potential and never doubted myself, even when faced with a stop loss. No strategy is 100% accurate, and the BellCurves are no exception. However, I have been able to achieve around an 80% win rate using this strategy consistently across any market and timeframe. I have made several 100% returns with this single strategy, and nowadays, I make around $10,000 per trade using it.
What Does the BellCurve Tell Us?
The BellCurve indicator highlights significant price movements. In other words, it filters out minor price fluctuations, or "price noise," and focuses on price actions that have a real impact on the market's future. This is what makes the strategy stand out: it only shows price actions that have a substantial impact on the market, which we can use to our advantage.
Green BellCurve
Highlights a strong positive momentum move to the upside, indicating a significant price move that will impact future price action.
Red BellCurve
Highlights a strong negative momentum move to the downside, indicating a significant price move that will impact future price action.
Knowing that the BellCurve provides insightful and actionable insights, we can build a strategy around it.
The Strategy Idea
The BellCurve strategy is a reversal or contrarian strategy, meaning we try to find the tops and bottoms that will transition into new trends. For scalpers, it can also be used to trade against the trend for quick profits. I (Zeiierman) use it for both finding major market reversals and for contrarian scalping within a trend.
What to Consider When Trading Reversals/Contrarian Strategies
Reversals are characterized by high volatility, meaning that the price will fluctuate over a larger range. This makes the strategy challenging for beginners, especially if they don't know how to set proper stop-losses that account for the current volatility. Beginner traders are likely to be stopped out before the real reversal happens due to this high volatility.
How to Manage That?
Reversals have great potential; if you catch them perfectly, you can make a lot of profit. To manage the high expected volatility, you can adjust your stop-loss by increasing it, while simultaneously decreasing your position size to avoid taking on too much risk during this volatile period. Essentially, we manage our risk with position sizing.
High Probability Trades
The BellCurve strategy works best around key levels. Make sure to read this educational post to understand how to identify key levels.
Long Entry
Can only be taken if the market is around a key level and a red BellCurve is formed.
Short Entry
Can only be taken if the market is around a key level and a green BellCurve is formed.
Entry Confirmation Around Key Levels
The entry confirmation around a key level can vary due to the high volatility typically observed at these levels. Consequently, a straightforward entry rule, such as "enter when the price breaks the key level," is ineffective. Instead, we must carefully analyze the price action around these key levels. This involves looking for specific signs like rejection candles or breaks of previous highs or lows that can validate our entry. By doing so, we ensure our trades are based on solid confirmation rather than arbitrary rules.
Long Entry
- Identify a key level on a higher timeframe (e.g., 1-hour chart).
- Wait for a red Bellcurve to form around this key level.
- Enter long at the first red candle after the price confirms the key level.
Short Entry
- Identify a key level on a higher timeframe (e.g., 1-hour chart).
- Wait for a green BellCurve to form around this key level.
- Enter short at the first green candle after the price confirms the key level.
Examples:
Long Example
Short Example
This strategy requires practice and a solid understanding of key levels and market structure. Stay disciplined and manage your risks effectively to maximize the potential of the BellCurve Strategy.