InstaForex

November 5, 2021

Short-Term Bollinger Reversion Strategy 2.0 (Oct. 28 – Nov. 4)

 USD/CAD had only one valid signal for the week while CAD/CHF scored FOUR valid plays!


Did the system end in the green?


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 bounced off the top band a few times throughout the week, but it didn’t really generate a valid short signal until much later on.


In fact, the short play popped up so late in the week that it’s still open for now!


The pair made it to the first target at the middle band, though, and is looking at a risk-free run for its remaining half.




Meanwhile, CAD/CHF was trending lower so it made several bounces off the bottom Bollinger Band.


Unlike USD/CAD, these generated valid long signals and yielded mixed results.


The first long play did pretty well since price made it to the first PT at the middle band then closed the remaining half at entry.



The second position had to be closed early for a loss when a new long signal came up a few bars after.

Fortunately the third signal turned out profitable again since it bagged pips at the middle band before the rest was closed at breakeven.


The fourth position also made it to the first target and is still open for now.


Unfortunately the two wins weren’t enough to make up for the loss.




All in all, the Short-Term Bollinger Reversion Strategy is down by 3 pips or 0.06% for the week.


I know it ain’t so bad, but I’m still disappointed!