This mech system caught a few more signals than usual over the past week. Read on to see how the positions 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 signal-free run in the earlier update and was finally able to catch some valid plays this time.The pair made several bounces off the bottom Bollinger Band during which RSI pulled out of the oversold region.
The first long position was closed pretty quickly as price reached the middle band right away then dipped back to entry to hit the adjusted stop loss.
The next one didn’t stay open for too long either, as it had to be closed early in the red when a new long signal popped up right after.
The last long play fared slightly better but not enough to bring the pair back in the black for the week:
With that, USD/CAD capped off the week with a 17-pip or 0.34% dent.
Meanwhile, CAD/CHF also caught a handful of valid signals, both long and short ones.The first position was a long one that managed to hit the full profit target at the opposite band in just a few bars.
This was followed almost instantly by a valid short signal which hit the first target at the middle band. Unfortunately price bounced back up to close the rest of the position at entry before the selloff could gain more traction.
Another long position was opened before the end of the week, and this caught some pips at the middle band.
CAD/CHF was able to close out with a 25-pip or 0.5% gain for the week.
With that, the Short-Term Bollinger Reversion strategy ended up with an 8-pip or 0.16% gain for the week, adding to previous gains.
Seen how the numbers turned out for Q3 2020 yet?