If you like mean reversion over trend, what are the advantages?

[traderking007]

im long nq down heer and have beenever since we bottoemd not spreading just buying and holding the nq. so thats what I am doing. making money not relatively either it is actual value

 

[traderking007]

im long nq down heer and have beenever since we bottoemd not spreading just buying and holding the nq. so thats what I am doing. making money not relatively either it is actual value

i like trading for profits and athat is what i love doing in futures in stocks in grains in spreads in pairs i LOVE IT ALL and options!!

 

[traderking007]

Yes. They do, and as was said earlier, pros use futures spreads extensively. Speculators use them for both mean reversion and trend trading. Spreading instruments will affect the mean reversion and trending behaviors.

There is an entire world of trading going on behind the scenes and between exchanges.

The guys talking shit about it are usually uninformed, unaware, or just plain ignorant.
Probably because they are uneducated in quantitative finance, derivatives pricing, and market making.

If you are a "futures trader" and don't use spreads and can't speak intelligently about them, you are ignorant about futures trading. Market makers and liquidity providers are trading them. Spread and basis trading is the vast majority of trading!

Reversion to what mean? If you mean VWAP it's all day every day. DJX VS SPX

Trending and reversion of futures spread -- Dow Jones VS Russell 2000.
View attachment 239037
Commonly traded index spread ratios with descriptions.

Large Cap / Small Cap (10*YM - 150*RTY)
Growth / Value (40*NQ - 15*YM)
Cyclicals (20*NQ - 100*RTY)
Hedged Tech (20*NQ - 50*ES)
Hedged Value (5*YM - 50*ES)

reaLLY APPRECIATED YOUR POST AND THE TIME IT TOOK TO PUT TOGETHER!!
NICE

 

[Real Money]

reaLLY APPRECIATED YOUR POST AND THE TIME IT TOOK TO PUT TOGETHER!!
NICE

Hey, I only mention it because it's useful for trading spread and outright. I know you love NQ. Well did you know the ES/YM spread is a synthetic index that tracks the nasdaq?

That chart is from today. No cherry picking. It works all the time.

 

[gaussian]

it is ok to make a guesss at which chart 1 or 2 is the spread and which one is the ourtfigtht and absolutely you can eyeball charts and "SEE REVERSION" you do not need to run mathematically tests to clearly see reversion but the math ad there are way more ways to skin a cat than what you mentioned of course and im sure you know that because even google knows that about spreads. the bottom line is that all of it has risk and the one that is better is the one you trade better if a trader or invest in better if an investor.

I have no interest in doing this right now but it’s possible to generate an apparent mean reverting series that is actually weakly mean reverting.

I’m really not sure why you are saying signal analysis isn’t useful. It’s probably one of the most important fields in EE.

 

[traderking007]

Hey, I only mention it because it's useful for trading spread and outright. I know you love NQ. Well did you know the ES/YM spread is a synthetic index that tracks the nasdaq?

View attachment 239061

That chart is from today. No cherry picking. It works all the time.

have you tried to spread the spread of nq versus those 2?i would assume slippge n fees make it almost impossible looks like a godo tracker though