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This mechanical trading system just caught one signal per pair in the previous week. Did these positions rake in big pips? Take a look!

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 looked like it was in for another one of its signal-free weeks, before a long signal popped up on a test of the lower band.

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

But since the position is taken at the open of the next candle, this gives the trade a bit more leeway to weather further bearish momentum. Here’s how it’s looking:

CAD/CHF also had one signal for the week as it bounced off the upper band. Price was able to make it down to the first target but pulled higher without reaching the bottom band.

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

Fortunately the stop was already adjusted to entry before price zoomed all the way up. However, the gains from the first position weren’t impressive at all.

In total, the Short-Term Bollinger Reversion strategy closed off with a measly 2.5-pip or 0.05% win on the account with the CAD/CHF position. The long play on USD/CAD is still open for now, so I’ll wait and see how that goes.

It hasn’t been the best of starts for this mech system this year, and the latest win does little to erase the earlier losses. Still, I’m hopeful it can maintain its good track record and pull off a decent finish like it did in Q4 2018!