InstaForex

October 7, 2021

Q3 2021 Review: Short-Term Bollinger Reversion Strategy 2.0

 After its stellar performance in Q2, was this mech system able to follow through with another impressive run in Q3?


Read on to find 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.


And I know I haven’t really covered the position sizing rules for this system just yet but, for simplicity’s sake, I decided to assume a 1% risk per trade in order to help me analyze total performance.


Out of 12 valid signals for the quarter, USD/CAD was able to win 9 trades or 75% of it all.


It racked up a total of 118.5 pips or 2.37%, which pales in comparison to the previous quarter’s 6.59% win, but a gain nonetheless!

Even more impressive is its maximum winning streak of 4.62% over 8 trades versus its longest losing streak of just one trade.


Of course as in previous periods, its average win is still smaller than its average loss of 1.00%. Its high win rate yields a pretty decent expectancy, though!



This pair also closed out in the green, as it caught 13 wins out of 19 valid signals or nearly 70% of its positions.



It did slightly better than USD/CAD since it bagged 189.5 pips or 3.79% in wins for the quarter.

It also had a decent winning streak of five trades and a maximum gain of 2.87% in that run, making up for its maximum drawdown of 1.48% on back-to-back losses.


Its average win isn’t too far away from its average loss either!


To sum it up, this Short-Term Bollinger Reversion Strategy 2.0 closed out with a 308-pip or 6.16% win for Q3 2021.


That adds up to 10.46% in winnings so far this year!