It was a bit of a slow week for this mechanical trading system as it only caught a handful of signals for each pair. Still, some gains were locked in!
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 short position left open from the previous week, and this made it to the first target at the middle band. It came close to hitting the full target at the opposite band but fell short by a few pips. Gah!
Another short position was opened on the test of the top band, and this fared much better as it went all the way down to the full profit target. A long position was opened soon after, and this one’s still open.
Here’s how the positions fared:
Meanwhile CAD/CHF didn’t really generate any new positions until the end of the week, when one short play came up after another.
Here’s how it’s looking:
All in all, the system was able to bag 38 pips or 0.76% for the week, thanks mostly to USD/CAD.