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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.

USD/CAD had a signal-free run in the past week and chalked up yet another one this time, even though the pair saw plenty of bounces off the top and bottom Bollinger Bands.

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

As you can see from the chart above, the pair was moving sideways early in the week. However, 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.

Meanwhile, CAD/CHF hit a big win on a sole signal in the previous update. It also saw a lot of range-bound action but didn’t really generate fresh signals for the week.

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

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!

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!