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It wasn’t really the best of weeks for this mechanical system, but it managed to catch one big win on CAD/CHF.

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 early in the week and was able to catch a short signal off the test of the upper Bollinger Band.

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

The currency pair went on to close half the position at the first profit target while the stop for the remaining half was adjusted to entry.

This adjusted stop loss was hit when price bounced right back up before eventually making it down to the lower band.

A fresh long position was generated on a test of the bottom band later on, but this didn’t fare so well as price just slid down to hit the stop.

Here’s how it turned out:

That leaves USD/CAD down by 31.5 pips or 0.63% for the week. Ouch!

Meanwhile, CAD/CHF had a long position left open from the previous update that had to be closed early when a new buy signal came up.

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

This was followed by yet another long signal and early exit, racking small losses as the price kept moving south.

Fortunately, the last long position managed to catch a good rally to the middle band and was able to stay open enough to close the rest of the position at the opposite band.

Unfortunately, that big win was not enough to make up for the earlier losses:

With that, CAD/CHF wound up with a 12-pip or 0.24% dent for the week, bringing the Short-Term Bollinger Reversion strategy down by 43.5 pips or 0.87%.

That marks the system’s first weekly loss this quarter!

Have you seen how the numbers turned out for Q2 2020 yet? Oh, and don’t forget to check out Forex Ninja’s Systems Showcase in case you missed it!