It’s another good week for this mechanical trading system, even though it only caught a few signals on both pairs. Check it out!
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 by moving sideways before breaking lower and generating a valid long signal on a test of the bottom band.The pair went straight up for the middle band to close half the position for a small win, then the remaining half was closed when the adjusted SL was hit.
Another long signal popped up later in the week, and this also reached the first profit target at the middle band. Unfortunately, the rest was closed at breakeven before price zoomed all the way up to the opposite band.
A fresh short signal came up, and this position is still open for now.
Meanwhile, CAD/CHF didn’t really have any valid signals for the most part of the week, until it seemed to break past the top band before falling back down.
This position hit the first target at the middle band, then tumbled straight to the opposite band to snag the full win.
Here’s how it went:
With those wins, the system was able to rack up a total of 98.5 pips or 1.97% for the past couple of weeks. Pretty impressive, huh?