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Another quick update on the Short-Term Bollinger Reversion Strategy 2.0! Not a lot of signals over the past few days for both CAD/CHF and USD/CAD, but here’s how the positions went.

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!

Now these are the valid signals on USD/CAD since its latest backtest results:

USD/CAD 1-hour Forex Chart

Remember that short position left open from the earlier update? Well, it got stopped out before the first exit signal was even triggered, as price spiked past the stop then resumed its drop. Bah!

And here are the ones from CAD/CHF since its latest backtest results:

 

CAD/CHF 1-hour Forex Chart
CAD/CHF 1-hour Forex Chart

This pair didn’t fare any better with its long position, either as price also spiked down to hit the stop before making its way to the middle band. Maybe I should introduce a no-trade rule when a top-tier report is released?

At that time of the price spike, Canada released its jobs report and the headline figures fell short of expectations, leading to a sharp drop for the Loonie.

So far not so good for this system, huh? Then again it does tend to do well in ranging markets since it’s a mean-reversion system after all. Unfortunately for this particular strategy, the pickup in volatility hasn’t worked in its favor.

Check out the other trading systems of my buddies, though!
HLHB Trend-Catcher System
Happy Hunter Trading System
Cowabunga System Daily Update