One more weekly update on this mechanical trading strategy before I start running the numbers for Q4. Did this pull off a strong finish?
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 didn’t really generate new signals for the week, but recall that a long position was kept open from the earlier update.
Now this one already hit the first target at the middle band to lock in some gains and have the stop rolled up. Price didn’t really dip all the way down to hit the entry level, so the trade was left open for a couple more days until price hit the top band.
Ha! Now that’s a good win for USD/CAD! Here’s how CAD/CHF is looking:
The pair snagged a long signal at the bottom band, but this barely gained any momentum on the bounce so price just kept tumbling to the full stop loss.
That wraps up another mixed one for this mech strategy, as it caught a big win on USD/CAD that gave up some pips on the losing CAD/CHF position. All in all, this amounts to a 24-pip gain or a 0.48% win for the system. Still not bad!