Just one signal each for USD/CAD and CAD/CHF on this mechanical trading system. Check out how these 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 had a new long signal when it tested the bottom band. However, there was still some bearish momentum leftover after that sharp drop, dragging price all the way down to its stop loss before even hitting the first target.
Here’s the damage:
CAD/CHF seemed to be on the same boat as it had a short signal on a test of the upper band after a strong move.
Fortunately this one hit the middle band before price zoomed further up. That way, the stop was adjusted to entry and prevented bigger losses.
All it got was one measly pip, though! Bah!
With that full loss and a teensy gain, the Short-Term Bollinger Reversion Strategy 2.0 wound up with a 49-pip dent or 0.98% loss on the account. That adds to the losses in the previous update, so I’m hoping a rebound is due soon.