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I’m seeing strong trends on both Loonie pairs I’m watching this week.

Was the strategy still able to avoid losses and catch wins?

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 with a valid short signal on a test of the top Bollinger Band early in the week.

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

The pair was able to dip to the first target at the middle band, adjusting the stop loss to entry in the process.

Price just couldn’t carry on with its drop all the way to the opposite band, bouncing higher and hitting the adjusted SL instead.

This caught a small 7.5-pip or 0.15% gain for USD/CAD:

Meanwhile, CAD/CHF underwent a sharp selloff during the start of the week before catching a valid long signal on a test of the bottom Bollinger Band.

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

Price moved sideways from there, but unfortunately the first long position didn’t even make it to the first PT at the middle band.

A bit of bearish momentum was still in play, dragging the position down to its stop loss before another signal popped up.

Fortunately this next long position was able to lock in some pips at the middle band before the remaining half was closed at breakeven.

Still, CAD/CHF wound up with a 40-pip or 0.80% loss:

This leaves the Short-Term Bollinger Reversion Strategy down by 32.5 pips or 0.65%, adding to earlier losses. Ouch!

Still not the best of runs for this system lately, huh?

Seen how the numbers turned out for Q3 2021 yet?