Just the one signal on this mech system for the week! Was it able to bag some pips?

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 was hanging around the bottom Bollinger band during the first half of the week before bouncing to the top.

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

Unfortunately it didn’t really catch a valid short signal right there before another bounce occurred, as RSI didn’t reach the overbought zone in time.

Meanwhile, CAD/CHF was consolidating tightly early in the week then broke higher to generate a valid short signal at the top band.

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

However, the currency pair just went on with its climb and eventually hit the stop loss on this trade.

CAD/CHF wound up with a full loss for the week:

With that, the Short-Term Bollinger Reversion strategy wound up with a 50-pip or 1.00% loss for the week, erasing some of the other week’s gains.

Seen how the numbers turned out for Q3 2020 yet?