Just when it seemed like the system was in for another signal-free week, a couple of fresh positions were opened on both pairs. Here’s what’s 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 moved mostly sideways for the entire week and made good bounces off the top and bottom bands.Unfortunately, these moves didn’t really generate any valid signals as RSI didn’t make it to the overbought or oversold regions when the bands were tested.
USD/CAD eventually broke below consolidation then tested the bottom band once more, but no new signals popped up yet.
It wasn’t until the end of the week that the pair was able to snag a short play on a test of the top band, but this position didn’t do so well.
Meanwhile, CAD/CHF was also range-bound for the first half of the week but failed to generate valid signals off the bounces.
Just like USD/CAD, this pair caught a valid play towards the end of the week.Price tested the bottom band and almost immediately hit the first target at the middle band to lock in some pips and adjust the stop to entry.
CAD/CHF soon hit the top band, so the rest of the position was closed for a small win on the open price of the next candle.
Thanks to this tiny gain, the Short-term Bollinger Reversion Strategy was able to close out with a 12.5-pip or 0.25% gain for the week.
I know it’s not much, but I’d take these small wins any day! Besides, the system was able to score much bigger gains earlier on, which seem to be enough for a profitable month quarter.