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 generated a valid short signal early in the week, and this almost immediately hit the first profit target at the middle band.The pair consolidated around that area before bouncing right back up to snag the adjusted stop loss at entry.
Here’s how the sole position turned out:
Meanwhile, CAD/CHF also had a valid short signal at the start of the week, and this was able to reach the first target at the middle band.
It’s just too bad that the pair hit the adjusted stop loss on a quick spike higher before the selloff picked up and reached what would’ve been the full profit target at the opposite band.
CAD/CHF wound up with a teeny-tiny gain for the week:
With that, the Short-Term Bollinger Reversion strategy wound up with a pretty decent 28-pip or 0.56% profit for the week, adding to the other week’s gains.
Seen how the numbers turned out for Q2 2020 yet?