This mechanical trading system has had a good streak in the past couple of weeks. Was it able to keep up this strong run?
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 made a couple of bounces off the top bands but didn’t really generate any short signals there. It wasn’t until the pair tested the lower band that a valid long play popped up.
Unfortunately price went further south from there until it eventually hit the stop loss.
Meanwhile, CAD/CHF had a short signal at the top band early on. This hit the middle band and the opposite band to snag a few pips. A long signal materialized on a test of the lower band soon after, but this also hit its full stop.
Another long signal was opened towards the end of the week, and it already hit the first target. Half the position is still open with the stop rolled up to entry for a risk-free trade.winning streak!