After a signal-free run last time, this mechanical system chalked up a fresh batch of signals for both pairs this week. Take a look!
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 was off to a running start as it caught a valid signal early in the week.Unfortunately, price didn’t really bounce much from this area as it simply carried on with its climb and eventually hit the stop loss. Ouch!
From there, the pair didn’t really make any new tests of the Bollinger Bands even though it moved sideways for the rest of the week. That leaves the pair down by 50 pips or 1% for now.
Meanwhile, CAD/CHF also snagged a valid signal early in the week.
Just like USD/CAD, this pair barely bounced off the band and just went on with its slide, eventually hitting the stop loss.Price went on to move sideways for the remainder of the week, even testing the top band a couple of times but failing to generate any new plays.
With that, the Short-Term Bollinger Reversion Strategy 2.0 ended the week with a 100-pip or 2% dent because of these stopped out positions.
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 much earlier on. I’m kind of excited to crunch the numbers for the quarter, too!