It looks like this strategy is doing a fine job of steering clear of strong trends while still profiting from range-bound pairs. Here’s what I mean!
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 pretty strong uptrend for the most part of the week, and the mech system was able to filter out the bounces that would’ve turned out be losses.
Meanwhile, CAD/CHF still had some range-bound action going on, and the strategy picked up on a good short play off the top band. This was able to hit the first target at the middle band and the full PT at the opposite band. Woot woot!A new long position was opened before the end of the week and it remains open for now.
Here’s how the positions are looking: