The system caught three valid signals this week! One of them is still open. What do you think happened to the other two?
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 went on with its downtrend but at a pace slow enough to tighten the Bollinger Band.
Price eventually reached the bottom band where the system validated a long trade. Thanks to a tighter band, the long trade was able to hit its first PT at the 50 EMA before heading lower.
This left USD/CAD with an 18-pip win (+0.36%) win for the week and no open trade to carry over the next few days.
Meanwhile, CAD/CHF traded in a tight range for most of the week.
Later on, price became more volatile to hit even a widened Bollinger Band. A short signal was validated and remains open until the next update.
For now, CAD/CHF has one trade that won an average of 18.5 pips (+0.37%) after hitting both its profit targets. Not bad after a quiet week last week, huh?