After a week of being signal-free, this mechanical system finally caught one valid play for each pair I’m looking at. Here’s how the positions turned out.
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 enjoyed a bit more volatility at the start of the month, climbing to test the upper band several times before generating a short signal with RSI.
Unfortunately, buyers weren’t quite done pushing the pair up so the position eventually hit its stop on that sharp pop higher.
CAD/CHF had a long signal as it tested the bottom band before February came to a close.
This one made its way to the middle band to hit the first target and have its stop rolled up. Too bad it didn’t reach the opposite band before sellers took over!
With that, the Short-Term Bollinger Reversion Strategy 2.0 wound up with a 31-pip loss or a 0.12% dent on the account from the full loss on USD/CAD and some gains on CAD/CHF.