Both pairs I’m watching on this mech system caught a couple of valid signals, and here’s 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 caught a valid short signal on a spike to the top band and price fell quickly back to the middle band to hit the first target. However, the decline came up short of reaching the opposite band to score a full win, climbing back to close the second position at entry instead.
A long position was opened towards the end of the week, and this reached the middle band to close half the position for a win.
Here’s how it all went down:
CAD/CHF snagged a short position on a test of the upper band, but this didn’t really gain enough downside traction to hit the first target. Fortunately, a new short signal came up before the previous one hit the full stop loss.
This second short signal turned out much better as it went all the way down to the middle and opposite bands for a full win.