I’m seeing plenty of bounces off the top and bottom Bollinger bands over the past week, but did this mechanical system catch any wins?
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 was trending lower for the most part of the week, making a few tests of the bottom band but not really generating any valid signals.
In retrospect, that was actually a good thing since the system managed to avoid potential losses in a trending market.
Meanwhile, CAD/CHF was moving sideways in the first half of the week before trending higher towards the end.Still, the pair was unable to catch any valid signals for the week as RSI barely made it to the overdone levels during the range-bound days.
With that, the Short-Term Bollinger Reversion Strategy had a signal-free week, which sort of serves as a breather after back-to-back weekly losses. Phew!