This strategy snagged a couple of losses and one full win for the week. Read on to see how the numbers stacked up!
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 signal-free run in the previous week, and it looked prime for yet another one until a long signal popped up on a test of the bottom band.Price moved sideways for a few hours after bouncing off the lower band, but it eventually dipped lower to hit the stop loss before recovering again.
The first play fared pretty well as it hit the first target at the middle band, locking in some pips and adjusting the stop to entry at the same time.The climb was a bit slow from there, but the pair eventually made it to the opposite band to hit the full profit target. Woot woot!
After that, CAD/CHF saw a fresh short signal at the upper band. Price consolidated for a few bars before popping sharply higher, hitting the stop loss in the process.
With that, the pair gave back its earlier gains as it snagged a full loss on the second position. Here’s how the numbers look:
With that, the Short-Term Bollinger Reversion Strategy 2.0 ended the week with a 71.5-pip or 1.43% loss. Ouch!
If my estimates are spot on, the system would still be in the black so far this month as it scored a couple of impressive wins a few weeks back. I’m kind of excited to crunch the numbers for the quarter, too!