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It’s a mixed round for the week, as this strategy caught a couple of decent wins but snagged some tiny losses.

How did the numbers add up?

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 in the earlier update, and this one got stopped out just before another short signal popped up.

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

Unfortunately this second short play didn’t fare any better, as price also hit the stop loss on that pop higher before it could even make its way down to the targets.

A valid long signal materialized on a test of the bottom band, and this was able to lock in some gains when the pair reached the middle band. It’s just too bad that price fell a few pips short of the opposite Bollinger Band on a couple of instances!

With that, the rest of the position had to be closed at the adjusted SL to entry. Here’s how USD/CAD fared:

CAD/CHF had a signal-free run in the earlier update but was able to get the ball rolling early on with a long signal.

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

This position made it to both profit targets at the middle and opposite band, scoring a total of 13 pips or 0.26% for the pair.

A short signal came up soon after, but this didn’t really catch a move lower… just like the rest of the signals that followed!

With that, CAD/CHF wound up with consecutive tiny losses as the positions had to be closed when new ones were opened after just a few bars. Here’s the damage:

Ouch!

This brings the Short-Term Bollinger Reversion strategy down by 150.5 pips or 3.01% for the week, adding to earlier losses.

Not really the best start for 2021, huh?

Seen how the numbers turned out for the previous quarter and for the entire 2020 yet?