One pair caught a bunch of profits under this mechanical system while the other had a signal-free run. Take a look!
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 in the previous week, and this scored some pips on a dip to the middle band. The remaining half was closed at breakeven.
Another signal came up on the test of the bottom band, and this snagged the first and second profit targets within just a few bars!
The pair is showing another valid short entry at the test of the top Bollinger band, and this one is still open.
Another valid signal popped up before the end of the week, and this one’s still open.Meanwhile, CAD/CHF was trading in a tight range for the most part of the week and didn’t really generate any new signals, even though it tested the top band later on.
With that, the Short-Term Bollinger Reversion Strategy was able to rake in a total of 44 pips or 0.88% from the USD/CAD plays. Not bad for a week, right?