It’s another slow week for this forex mechanical system as it caught only one valid signal on CAD/CHF. Did it churn out a profit at least?
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.RSI didn’t really turn from the overbought or oversold regions to generate a signal.
After a bit of consolidation, price reverted to the middle band to lock in gains at the first profit target.From there, the pair carried on with its drop and came within striking distance of the opposite band.
Unfortunately, it never really touched the dynamic support level to hit the full profit target. Bah!
Instead, price zoomed all the way back up to the top band and beyond. Thank goodness the trailing stop was already at the entry price to close the rest of the position at break even.
I guess this strategy needed a bit of a breather after a stellar run the other week and the impressive 3.97% gain a few weeks back, so I ain’t complainin’!