A couple of positions were left open since the previous update, and it looks like things are looking up for this strategy. Read on to see what I mean.
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 had a short position left open, with price already hitting the first target earlier on and with the stop adjusted to entry.
Price pulled up a bit but not enough to hit the adjusted stop loss at entry, keeping the position open until the pair hit the opposite band on the weekend gap.
Woot woot! That’s a pretty big win on USD/CAD!
Now here’s how CAD/CHF is looking:
The long position from earlier on hit the first exit at the middle band for a small loss, but the second half was closed early at breakeven.
A short signal soon materialized at the top band and price went all the way to the opposite band, too!
Thank goodness a decent win on the second position made up for the earlier loss. That brings CAD/CHF up 55.5 pips or 1.11% while USD/CAD is looking at an impressive 101-pip gain or 2.02% win.
Overall, the mech system is up 156.5 pips or 3.13% for the week. That just might be its best run yet!