Return to the Means (Centered)
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DislikedHi AlphaOmega and thanks fort this strategy. What is going to happen if the market make a huge move in one direction and doesn’t come back? With this pyramid system, You will probably have a lot of positions in loss. You can see this condition twice in Your screenshot in the initial post. I think it would be hard to recover from those big losses...Ignored
DislikedHi, and thanks for stopping by! Regardless if you're new or old member of the forum, keep reading here and I promise you will not be disappointed! From my point of view this thread is the natural continuation of the thread "Higher Edge within a Single Candlestick” and here I intend to share with you some of my discoveries regarding this concept. As I commented in the original thread, I believe that we can create and apply multiple strategies only by using the information which is...Ignored
Disliked{quote} I've traded reversion to the mean systems for years and even developed a very robust trading application around the concept years ago. The way to get around long trends is multiple time frames. For example, if trading intraday charts, verify the intraday mean against higher a higher time frame like the 4hr or daily. More often than not, there will be confluence between lines across time frames. IE the mean on the Daily is the +1 or +2 on a 15 min or 30 min. etc. One of the things that can happen is that the mean can be trending upwards steadily...Ignored
Disliked{quote} Here's a trade I did late in January to show a simple reversion to the mean (and then some). http://content.screencast.com/users/...0Jan.%2025.gifIgnored
Disliked{quote} I've traded reversion to the mean systems for years and even developed a very robust trading application around the concept years ago. The way to get around long trends is multiple time frames. For example, if trading intraday charts, verify the intraday mean against higher a higher time frame like the 4hr or daily. More often than not, there will be confluence between lines across time frames. IE the mean on the Daily is the +1 or +2 on a 15 min or 30 min. etc. One of the things that can happen is that the mean can be trending upwards steadily...Ignored
DislikedGreat thread and thank you for sharing all your hard work. I have been playing with the indicator and remembered a while back, I did some research on when Hi or low of the day is formed and found from LO it’s normally the first few hours. Having gone through your indicator, I can see that if there is a low or hi just after LO and it come back through the midpoint then we can expect the overside to be formed. So, if we have a low after London open then it passes through the midpoint we can expect to see a hi form, most time of the same distance....Ignored
Disliked{quote} n. That's why in the first post I said that we have to look at each trading cycle as independent event. We don't look at history! We don't look at other time frames. We don't look at indicators.....We don't look at news. We only take into account the current raw data. High, low, Range, Mid, Time, Current price. That's it! Keep it simple. .Ignored
DislikedHere you can see example for correct trading using the standard rules with EURUSD price action from this morning: {image}Ignored
Disliked{quote} In fact when we add information from other time frames or from indicators we get very bad results. More "filters" = bad results! This is very counter-intuitive and initially does not make sense. Right? But I trust my tests! I don't trust opinions. .Ignored
Disliked{quote} for me it looks like you are drawing square of 9 roadmap chart http://www.tradingfives.com/square-of-nine-in-excel.htm {image} {image} {image}Ignored