It was another good week for this mechanical system as it scored big wins on one pair while the other had a signal-free run.
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 mostly range-bound the entire week and it had some decent bounces off the bottom bands, but RSI didn’t confirm any valid signals.Meanwhile, CAD/CHF had a long position from the earlier update, and this one snagged both profit targets at the middle band then the top band. Woot woot!
A fresh short position was opened later in the week, and this only made it to the first target at the middle band before the remaining half had to be closed at entry.
Another valid short signal came up soon after, and this position is still open.
Here’s how the recent plays went:
With that, the system was able to close out with an impressive 125-pip or 2.50% gain for the week as the ranges were much wider this time around.