I’m seeing all green on this mechanical system this week! Check out how many pips USD/CAD and CAD/CHF were able to catch.
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 sideways for the most part of the week, but it wasn’t until yesterday that it generated a valid signal.Price tested the top Bollinger Band while RSI was turning lower from the overbought zone, triggering a short position.
From there, the pair slid to the middle band to lock in gains at the first profit target while also adjusting the stop loss to entry for a risk-free play.
The selloff continued until the bottom band, scoring a full win for USD/CAD. This was soon followed by a long signal, and this position is still open.
Here’s how the positions turned out:stop loss at entry.
The pair continued to move sideways then caught a valid short play on a test of the top band. This hit its targets pretty quickly as price tumbled to the middle band then the opposite band the following day.
A long position was opened soon after, and this also fared well as it hit both profit targets.
Here’s how many pips it bagged:
With that, the Short-Term Bollinger Reversion Strategy was able to chalk up a total of 124 pips or 2.48% in gains for the week. Ka-ching, ka-ching!
So far so good for this mech system this quarter, huh?