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I spotted a lot of bounces off the Bollinger Bands on both pairs but the system caught just the one signal on USD/CAD. How did this turn out?

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.

USD/CAD snagged a long signal when it tested the bottom band early in the week. Unfortunately, this barely gained any upside to the middle band and just crawled all the way down to hit the 50-pip stop loss.

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

Volatility picked up later on and the pair busted out of the top band for a bit before heading back down. However, the indicators didn’t really line up for a valid signal then.

Here’s how CAD/CHF is looking:

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

Once again, this pair had more than a handful of bounces off the bands but didn’t really get any confirmation from RSI. Looking at how price action turned out shows that it’s actually a good thing because bearish momentum carried on and those positions would’ve been stopped out anyway.

With that, this mech system ends the week with a 50-pip loss or 1.00% dent on the account because of the signal on USD/CAD. Not the best of weeks but I do hope it recovers soon!

ICYMI, check out its Q3 2018 performance and if the other forex mechanical strategies fared better in the latest Forex Systems Showdown.