This mechanical trading system has been doing really well so far this month. Was it able to add to its gains lately?
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 was nowhere near the oversold region to generate long signals off the support bounces.
Price broke lower but still didn’t catch any valid plays, even when it rebounded to the top Bollinger band.
The pair had a neat bounce off the bottom band early on, but the oscillator didn’t hit the oversold region in time.Similarly, the test of the top Bollinger band also wasn’t accompanied by an overbought RSI signal, even though the resulting move would’ve hit the full profit target later on. Boo!
With that, the Short-Term Bollinger Reversion Strategy 2.0 ended the week with neither any gains nor losses.
Even so, 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!