It’s a mixed bag for this strategy this week, but the recent gains have still been larger than losses. Here’s how it all summed up.
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 started off with a valid short play at the top band, and this was closed for a small loss after price dipped to the middle band then bounced right back up.Another valid short signal came up later in the week, and this one made it all the way to the opposite band to hit its full target.
Here’s how the positions turned out:
CAD/CHF had a short position left open from the earlier update and, after a lot of sideways action, it was closed at a tiny loss.
A new short position was opened soon after, and this one hit its first target at the middle band before the rest had to be closed at entry. Another short position followed, and this position is still open.
Here’s how it went:
That’s a total of 29.5 pips or 0.53% for the week, adding once again to the previous week’s gains!