Rubber band trade rules. Things you will need in order to do the Rubber band trade.
- 2 linear regression channels (LRC)
- set the first one to 1 standard deviation
- set the second one to 2 standard deviation
- both set to a length of 30
58 Comments
I am alive and breathing my friend. Love your trade setups, they are so easy. I’m still having fun with the earnings/news GAP trade from last week’s seminar. Always appreciate you sharing your knowledge.
Chris
Great to hear hope you make a killing with them.
Thanks
Hubert
yeah Im alive and well like your ideas
kevin
Thanks
Hubert
Very simple and elegant trade and you explain it in the most simplest manner so that anyone can understand it
Great!!!!!
Isaac Benderly
Yeah I try my best to keep it simple.
Hubert
Hello Hubert, thanks for the Bond trade example and new trade set-up in Crude Oil. It helps to follow along with a live trade. Thanks for all you do to share your knowledge and experience with your students. The check list trading approach helps us ramp up faster and profit quicker. Your the best!!!! Thank you!
Candy Reker
Glad you like the trade set ups.
Bonds are a great product to trade nice and steady.
Thank you for your kind words.
Hubert
Hubert,
Would you take the Rubber Band Trade Long only if the LRCs are pointing upwards? Otherwise, even though a snapback is expected, it is actually a counter trend trade on the time frame you are working on. NO???
Don
If they were pointing up that would be best for a long but it’s not required.
You are correct since it is a counter trend trade it won’t matter much.
Hope it helps
Hubert
Hubert,
Thanks.
Probably won’t do it for CL as long is counter trend big time but I am certainly going to try smaller time frames, etc.
Roger
let me know how it goes and if you have any questions.
Hubert
Thanks for sharing Hubert, nice simple set up.
I’ll give it a shot and see how it goes.
I’m loving the 2 minute trading tips.
Great stuff
Steve
let me know how it works for you.
Thanks for the feed back
Hubert
hi hubert… first of all thanks for the key stock earning video… do you try this on stocks? or maybe on key stocks like goog, aapl, amzn etc?
Hi Hubert…
Good setup. Thanks for sharing. Like the rules. BTW, I was in your Gold Trading seminar in Sep and wanted you to know I’m ‘starting to get the hang of it’. Haven’t called the number you gave us yet b/c I wanted to have some trades under my belt first so I could ask the ‘right’ questions about the rules that are working for me.
Have you tried this contract on /GC (or GLD) and could you trade USO as a proxy for /CL? (TOS lets you set a rule to trigger you into / out of a trade on one ticker (USO) based on an action in another (/CL).)
Thanks!
Wes
Wes Huggins
Keep at it one you get it no one can take it away from you.
I prefer the GC but you should be able to use GLD if you do the trade be fore the
Stock market closes.
As far as the USO as a proxy for CL that will work fine.
Hope it helps
Hubert
Hubert, Does this LRC set up work with gaps? In other words, if a stock gaps down then retraces, can you buy it at the -1* line? Or would you forego that approach and stick with the gap setup? Just curious
Brian B
I have never use it for gaps.
That would be interesting to look into to see how it works.
With gaps I know like and trust the Gap stats.
Hope it helps
Hubert
Enjoyed watching the video on the rubber band trade.I am based in the UK. Does trading 1 contract on the ES per $5000 in the account
sound sensible to you or what would you advise.Some traders are saying the ES is difficult to trade right now due to tight ranges ,what do you think.Also I follow Don Miller on his blog and trading
videos on the site trading after dark , have a look and let me know
what you think.
Regards,
Simon
Simon
The E-Mini can be tough to trade.
Think of them like this they run stop and reverse.
Where as other stuff like Gold or Bonds are like long distance runners.
$5000 can work I would rather see you trade 1 contact per $15000.
So you don’t have to use so much margin.
But it can be done if you know what you are doing.
Hope It helps
Hubert
I LOVE these LRCs and use them all the time. My favorite trade is to enter when price goes beyond the second sd on the hourly. TTM LRCs on TOS are set for a 38 period. What is the advantage of 30? Once again, thanks for all the help and advice you so generously give.
Joan
Yeah Rubber Band Trades are Great.
It’s just the default setting.
No real advantage just shorter and little quicker is all.
Thanks
Hubert
Hubert, you ROCK!
Joan
Thanks
Hubert
Hubert
the rubber band trade settings –are they the same as John Carters on tos?
Ron
No the rubber band is based on LRC.
Hubert
hi hubert, thanks for your great advice and strategy.
just 1 question for traders who trade small account, let’s say $ 5k,
what time frame would you recommend in order to not have such a big stop as in the CL example but still a reliable strategy?
thanks in advance for your reply
paul
Paul
Great question.
I would not recommend trading crude
with a $5000 account.
Crude is bi-polar at best most of the time.
Only way you could do it is risk like 10-15 tick but that is
a real tight stop.
I would recommend you trade bonds or spot forex mini or micro. That way you give yourself a chance.
Hope it helps
Hubert
Have you ever used the LRC’s in a longer timeframe? I use TOS and thought I had it set to 30 but it was on full range which was a year on a daily chart and it looks like it works pretty well on that setting also.
John
Yep they work great on longer time frames.
Just need to use bigger stop to make them work.
Hubert
John,
For daily charts, when you say the length setting not on 30 but on “full”, what did you mean? The default setting of 38 in TOS or something longer?
There is a line in the settings for the indicator that says “full range” and you can set yes or no. If it is set to yes it applies the indicator to the range the chart is set to not the setting for the amount of days.
If the regression channel is sloping down can you reverse the rules for a Rubber band short trade
Hugh
The Yes the Rubber-band Trade will work on both long and short trades.
Hope It helps
Hubert
will this work with normal stocks,,qqq,, etc.?
russ
Yes it will.
Hubert
when it snaps back,,,do you wait for candle close to enter or as soon as it hits the line?
russ
You can do either way just make sure you do it the same each time.
I just let it touch and that is good enough for me to get in.
Hope It helps
Hubert
Hubert,
Is this trade good on tick charts? If not, what is the most consistent chart time for success? Thanks.
Mark
I
Mark
Yes it will work with tick charts.
I prefer the 15min & 45Min charts but I will also use other.
Hope it helps
Hubert
Hubert, can you tell me how to set up the 4 standard deviations.
Thanks and please send it to my email address if you wouldn’t mind.
Stan
Stan
I just add 2 LRC to the chart and change the settings.
I can do a video on it fro you.
Hope it helps
Hubert
Hi Hubert! Big fan for many years. in the Rubberband trade. If the outer channel is penetrated, then you wait for a move to the next channel above or below as your entry. What happens if , while your waiting, and before your entry, time passes and the lines change and the price action which triggered the trade to begin with is nolonger penatrating the outer channel, is the trade still valid? Thanks for all your good work.
Rick
Yes I would still do it.
On thing I do is I use horizontal lines to make the line so that i have a reference where they started.
Hope it helps
Hubert
Hi Hubert! Thanks for your previous responce. I’m wondering how you and John protect yourself from lock-limit conditions when your trading AGs products. Cotton was up lock-limit for days a while back and if you were short you were cooked! Thanks for all your good work. Rick
Rick
I have a built in indicator that help me avoid that.
If it happens the only thing you can do is hedge in some other Market.
Hope it helps
Hubert
Can you direct me to your posts on gold setups like gold rush,…? Thanks much
Sam
I don’t know if I have a short video of it online yet.
Sorry I might add one in the future.
Hubert
Nice video, as always Hubert,
as a trading student, I’m always enjoying your setup tutorials and keep learning – hope to someday get into the futures – if a person does well with directional options with a small starter account, can the same skills work with futures? Thanks again.
Hubert:
Really enjoying your teaching, can you explain how you move you TP as the trade goes in your favor, as you reach Target 1, Target 2, etc. Thanks
Jim
Jim
What are you calling the TP?
Hubert
Can you show how to draw this LRC, is it from to low or it draw by it self.
Thanks!
Sor
The LRC that I use just automatically does it for me.
All I do it apply the Analysis tech and it does the rest.
Hope it helps
Hubert
You do an awesome job on your videos. You make it so simple to understand what your talking about. love it! By the way, do you ever trade forex? My LRC indicator (using MT4) doesn’t look like yours. No way for me to set -1, -2, +1, or +2. Wish I could. This is nice.
Take care, God bless you and your family and keep up the great work.
Hi Hubert,
I have been using the Rubber Band trade with a Range/Renko hybrid price bar in NinjaTrader – amazing how well it works on the quick scalps that is my comfort zone. The ‘KISS’ principle (Keep It Simple Stupid) works yet again – can’t thank you enough for sharing your ideas. The beer is on me if/when you come to Toronto my friend 🙂
Evidence of life is relative.
But great and easy to understand trade setup as usual
Great way of seeing a problem and resolving it
-al
Just love your ability to get the message across so easily and fluantly Hubert. Ever since doing your Ichimoku class/s my trading has gone “gang-busters”… that’s Aussie for fantastic.
Can’t wait to try the “rubber band trade”
Wags.