USD/CAD finally caught a valid signal for the week while CAD/CHF had a couple new plays.
See how it all 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 started off in tight consolidation before tumbling lower and bouncing off the bottom Bollinger Band.This generated a valid long signal since RSI was climbing out of the oversold region then.
The pair reached the middle band to close half the position at the first profit target, then the rest had to be closed at breakeven when price dipped again.
With that, USD/CAD caught 17 pips or 0.34% in gains.
CAD/CHF was trending higher throughout the week, but it caught a couple of short plays on tests of the top band.The first short signal actually caught a win since the pair still dipped to the middle band to close half the position in the green and the rest at entry.
Unfortunately the second short signal turned out to be a full loss since CAD/CHF climbed to the stop.
Here’s how it turned out:
This allowed CAD/CHF to close out with a 37-pip or 0.74% loss. Ouch!
This brings the Short-Term Bollinger Reversion Strategy down by 20 pips or 0.40% for the week, resuming its losing run so far this year.
Seen how the numbers turned out for the previous quarter and for the entire 2020 yet?