Since there were fewer than usual signals for this mech system over the past weeks, I was able to crunch the quarterly performance numbers, too!
In this revised version of the Short-Term Bollinger Reversion Strategy, I’m waiting for RSI to cross above or below oversold or overbought levels to indicate a bit more momentum in the direction of the trade. Make sure you review the tweaks here!
But first up, here are the last couple of signals for both pairs before the quarter closed. Here’s one on USD/CAD:
This pair had a long position opened at 1.3270 but unfortunately hit its 50-pip stop loss in the same day.
As for CAD/CHF:
This pair’s short position was able to make it to the middle of the bands in order to close half while the remaining position was closed at breakeven.
And I know I haven’t really covered the position sizing rules for this system just yet but, for simplicity’s sake, I decided to assume 1% risk per trade in order to help me analyze total performance.
Pretty good run, don’t you think? That’s nearly three times as much as the pair’s gains for the previous quarter with slightly fewer trades and a bit of improvement in the win rate.
Just when I thought this pair couldn’t possibly top the 3.46% gain in Q1 2018, it rounded up an even more impressive 6.80% gain for the second quarter!
Although its win rate was lower at 76.47% compared to the earlier 83.33% figure, its average win of 0.57% was much better than the average loss of 0.16% in Q2 and also the 0.51% average loss in Q1.
Just like USD/CAD, it was also able to snag most of its wins from a good run in the end of May to early June. It also had another good winning streak in the first week of May.
How do you think this strategy will stack up to my other mechanical systems? Stay tuned to my next set of quarterly reviews to find out!