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This strategy caught just one valid signal for the week on USD/CAD. Read on to see how it turned out!

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 had a short position left open from the previous update, and this eventually hit the first profit target after a bit of sideways action.

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

Unfortunately the closing price was right smack in line with the entry price, so no gains were bagged for this one.

The pair slid down to the bottom band from there and generated another valid signal when RSI pulled out of the oversold region. However, this one wound up as a loss since price continued to move lower.

Meanwhile, CAD/CHF just made one test of the top band throughout the week but didn’t really catch a valid signal since RSI wasn’t indicating overbought conditions then.

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

With that, the Short-Term Bollinger Reversion strategy ended up with a 50-pip or 1.00% loss for the week, erasing earlier wins.

Seen how the numbers turned out for Q3 2020 yet?