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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.

USD/CAD had an impressive short play the other week, but it wasn’t able to catch any valid signals at all this time.

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

The pair simply made a couple of bounces off the bands, but RSI didn’t really turn from the overbought or oversold regions to generate a signal.

Meanwhile, CAD/CHF was able to catch a valid short signal as price tested the top Bollinger Band early in the week.

After a bit of consolidation, price reverted to the middle band to lock in gains at the first profit target.

CAD/CHF 1-hour Forex Chart
CAD/CHF 1-hour Forex Chart

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.

With that, the Short-Term Bollinger Reversion Strategy 2.0 ended the week bagging a meager 5.5-pip or 0.11% gain from the sole signal on CAD/CHF.

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’!

Have you seen how the numbers turned out for Q1 2020 yet? Oh, and don’t forget to check out Forex Ninja’s Systems Showcase in case you missed it!