I’m starting the year off with a quick look at the remaining signals from the previous weeks, plus the first few positions for 2019.
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 one last signal to cap off 2018 as it hit the top band and RSI confirmed a short signal.
Unfortunately the position was opened a number of pips below the actual bounce, not leaving much leeway as the stop was hit on another bounce.
Not such a good finish for USD/CAD, huh? Did CAD/CHF make up for it?
The pair snagged a long signal at the bottom band, but another dip was due before price hit the middle band. Sadly this position also hit its stop loss before that happened.
But not all hope is lost! A short signal popped up early this year and is going well so far as price already hit the first target at the middle band. This locks in at least 40 pips or a 0.2% gain on the position, with the remaining half risk-free.
This adds up to a 100-pip loss or a 2% dent on the account for the last week of 2018, but I’m keeping my robot fingers crossed for a promising start for this year.