Even with both pairs moving sideways, this strategy caught only one valid signal this week.
Did it catch gains at least?
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 range bound throughout the week, but it didn’t really test the top and bottom Bollinger Bands early on.
The pair bounced off the bands a couple of times during the latter half of the week, but RSI wasn’t exactly moving out of the oversold or overbought regions during those instances.
It’s another signal-free week for this one then!
Meanwhile, CAD/CHF was also moving sideways, and it managed to catch a valid short play midweek.
CAD/CHF 1-hour Forex ChartCAD/CHF 1-hour Forex Chart
This went on to hit the first profit target at the middle band, effectively adjusting the stop loss to entry for a risk-free trade as well.
Price spiked back up to hit the stop loss before carrying with its slide close to the opposite band.
It missed the full target by a few pips anyway, so I’m not feeling too bad about having the remaining half closed at breakeven.
CAD/CHF was able to bag a meager 6-pip or 0.12% gain, which makes up the profits for the Short-Term Bollinger Reversion Strategy this week.
It’s not much, but it’s still a win! Besides, that adds up to back-to-back gains for the strategy, so I’m keeping my robot fingers crossed for another positive quarterly finish.
