It was another mixed week for this mechanical trading system as one pair snagged a loss while the other is doing well so far. 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 had a short position left from the previous week, but this didn’t revert to the middle band at all. Instead it kept climbing until it hit the full stop. Ouch!
No other signals for this pair for the rest of the week, so here’s how it turned out.
CAD/CHF had a decent run in the earlier update and followed it up with a couple of winning positions.
On the first position, price hit the upper band all right, but the spike was so quick that the remaining half was just closed at entry.
The second position was able to hit the first target at the middle band for a teensy win before getting closed at entry, too.
With that, this pair wound up with a 14.5-pip or 0.29% win while USD/CAD sulked off with a full 50-pip or 1% loss. That brings the Short-Term Bollinger Reversion strategy down by 35.5 pips or 0.71% for the week. Bah!
Still no big rebound in sight for this mech system, huh? Do you think I should start thinking about new changes again or just trust that it could pull off a good finish like it did in Q4 2018?