One signal per pair again this time! With volatility lower than usual, was the system still able to catch any gains?
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 barely reached the opposite bands earlier on, but it managed to test the bottom Bollinger Band and catch an RSI long signal.
It’s not looking too good, though, as price hasn’t made much effort to bounce to the middle band. So far, it’s still a few pips away from the stop loss but I’m worried that it could sink there later on.
CAD/CHF also had a valid signal later in the week, and this one fared slightly better since it reached the middle band and first target.
The remaining half had to be closed when price hit the adjusted stop loss, and here’s how it turned out:
With that, the Short-Term Bollinger Reversion Strategy 2.0 wound up with an 11.5-pip win or 0.23% gain on the account thanks to CAD/CHF’s short position. USD/CAD still has its long play going but is currently in the red.
With just a couple of weeks left in this quarter, do you think this system can pull off a strong run like it did in Q4 2018? Oh, and don’t forget to check out Forex Ninja’s Systems Showcase in case you missed it!
