One pair had a signal-free week while the other caught a couple of valid signals. Read on to see how these positions fared.
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 bounced off the top Bollinger Band a few times early in the week but didn’t generate any valid signals since RSI didn’t reach the overbought zone then.The pair went on to trade around the middle of the range before testing the bottom band a few times later on. Still, it was unable to catch any valid plays for the rest of the week.
Meanwhile, CAD/CHF was able to catch a valid short play on a test of the top band around the middle of the week.
This went on to score some wins as price dipped to the first profit target at the middle band.After a bit of a bounce, the pair went on to drop all the way down to the opposite band.
A new long signal popped up then, and this also made it to the middle band and is still closing in on the top Bollinger Band.
Here’s how many pips the pair was able to catch:
With that, the Short-Term Bollinger Reversion strategy ended up with a 29.5 or 0.59% for the week, making up for earlier losses.
Seen how the numbers turned out for Q3 2020 yet?