After a signal-free week, this mechanical trading system finally caught some valid plays this time. Did these churn out profits?
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, but it caught a valid long signal off a bounce from the bottom Bollinger band.
Unfortunately this didn’t gain much traction past the middle band, but it still caught some gains.
Another valid signal popped up before the end of the week, and this one’s still open.
Meanwhile, CAD/CHF generated a short signal on a bounce off the top band, but this had to be closed early for a loss when another signal came up.Fortunately this second short play turned out very profitable as the pair made it to the middle band then all the way down to the opposite band.
With that, the Short-Term Bollinger Reversion Strategy scored a total of 25.5 pips or a 0.51% gain on the account. Not bad, eh?