Got a couple of valid short signals on this mech system for the week. How did these positions turn out?
I’m not really expecting #Gamestonk-like returns on this one since I’m going for more consistent gains in the long run.
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 cruising higher early in the week before catching a valid short signal on its second test of the top band.This position made it down to the first profit target at the mid-channel area of interest but came short of hitting the opposite Bollinger Band.
Instead the pair went back up to the entry price to close the rest of the position at the adjusted stop loss.
Another short signal popped up towards the end of the week, and this position is still open.
CAD/CHF was trending lower at the start of the week and didn’t really test the bands until price started moving sideways during the latter half.Unfortunately none of these generated valid short or long signals since RSI didn’t reach the overbought or oversold regions then.
With that, the Short-Term Bollinger Reversion strategy closed out with a meager 9.5-pip or 0.19% gain for the week, barely enough to make up for the big losses last time.
So much for a strong start this 2021!
Seen how the numbers turned out for the previous quarter and for the entire 2020 yet?