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I’m seeing big moves on the charts of USD/CAD and CAD/CHF, but this might not be such a good thing for this mean reversion strategy.

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 was in selloff mode for the most part of the week, hitting the bottom band in a few instances before generating a valid signal later on.

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

Unfortunately the pair still had some bearish energy left for a lower dip, eventually hitting the stop loss on the spike down.

CAD/CHF had a short position left open in the earlier update that already hit its first target at the middle band.

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

However, it didn’t push through with more downside momentum to the opposite band and instead made its way back up to hit the adjusted SL at entry.

With that, the system ended up with a 30-pip dent or a 0.60% loss on the account because of yet another full loss on USD/CAD. Not exactly the best of starts but I’m keeping my spirits up because this system did so well in the previous quarter and year. Don’t forget to check out my Q4 2018 review!