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This mechanical trading system had only one valid signal for the week, but it turned out really well. See how many pips it racked 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 snagged a full loss in the earlier update then had another one of its signal-free runs this week.

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

Price moved sideways early in the week then bounced off the bottom and top Bollinger Bands, but RSI didn’t reach the oversold or overbought levels in time to generate valid signals.

The pair went on to trend lower, and fortunately didn’t snag any false signals that would’ve turned out to be losing positions. Phew!

Meanwhile, CAD/CHF also had a rough time in the previous week but was able to cash in on a neat bounce off the bottom band this time.

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

The pair climbed up to its first target almost immediately, locking in 43 pips on half its position and adjusting the stop to entry on the remaining half.

From there, the price went on to surge all the way up to the top band to hit the full profit target. Woot woot! 🚂

With that, CAD/CHF was able to make up for its earlier losses with this win:

Thanks to this sole position, the Short-Term Bollinger Reversion Strategy 2.0 ended the week with a 72.5-pip or 1.45% gain.

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!

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!