I’m seeing a lot of rangebound action and a handful of valid signals on USD/CAD and CAD/CHF.
How many pips did the strategy catch this time?
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 moving sideways throughout the week, but it only caught one valid play on a test of the bottom band.Price popped up to reach the first profit target at the middle band almost instantly. Too bad it fell short of the top band to score more gains!
Instead, USD/CAD slid back to hit the adjusted stop loss at entry. It managed to lock in only a few pips this week, but a win is a win!
CAD/CHF also moved sideways for the week but caught three valid signals.
The first was a short play that reached the first target at the middle band then bounced back to close the rest of the position at entry.The next signal was a long position on a test of the bottom band. This also reached the first target at the middle band before the remaining position was closed at the adjusted stop loss.
Before the end of the week, CAD/CHF caught another valid long signal that almost immediately scored wins on the middle band.
As with the earlier positions, the remaining half had to be closed when the pair retreated to the entry price.
Here’s how it all turned out:
CAD/CHF was able to close out with a 12-pip or 0.24% gain for the week. I know it ain’t much, but I’m not complainin’!
With that, the Short-Term Bollinger Reversion strategy ended up with an 29.5-pip or 0.59% gain for the week, chalking up its third consecutive winning week.
Seen how the numbers turned out for Q3 2020 yet?