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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.

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

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:

Meanwhile, CAD/CHF had a long position left open in the earlier update that already had its first target hit.

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

The remaining half of the position had to be closed at break even when price retreated back to the adjusted 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?

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!