Reversion To the Mean (RTM) Intraday Strategies

[Tums]

Quote from IronFist:
Looks like LL, LH, HL.
Is it safe to assume that after the HL a reversion to mean may be probable? The presence of the LH and HL signal the downtrend may be ending.
(that's what i'd guess based on my beginner knowledge of PA)

Before I go into the details of this example, let's take a minute to look at the global context:

In order for RTM to happen,

1. There must be a mean, otherwise there is nothing to revert to.

2. in order to have a mean... the instrument must oscillate.

 

[slapshot]

Quote from Tums:

The same to you.

You started it by being disparaging.

I simply made an observation/opinion and you had to go and be all butthead about it.

Let's move on.

 

[Tums]

Quote from slapshot:
You started it by being disparaging.
I simply made an observation/opinion and you had to go and be all butthead about it.
Let's move on.

Some people like to make simple observations,
some people like to make mindless opinions.

Some people are here to prove they are ignorant.

Read my post again, you might learn something.

 

[yayt]

I wonder if one can ignore moderators.

As for the strategy, the way I could approach it is trading in a range bound market and buying when price is falling to support, and selling when price is rising to resistance. In this case the mean would be the middle of the range (or somewhere along those lines)

I believe in the ES journal there was an example of this for yesterday or maybe Friday, it was possible to get about 8 such swings?

Today as well, although not near as 8 (more like 4 at the most, that I see at least).

 

[slapshot]

Quote from Tums:

Some people like to make simple observations,
some people like to make mindless opinions.

Some people are here to prove they are ignorant.

Read my post again, you might learn something.

I did read it, it was useless + immature with no real basis in fact, just your arrogance and insults.

You never even stopped to ponder what I originally meant and have not even addressed the 2 questions I asked you about it to elaborate.

Instead, you spew drivel like the above, trying to make yourself look superior. It is a thin veil, pal. No one is fooled.

I'm done conversing with you, it's not worth my time.

 

[slapshot]

Quote from Tums:



2. in order to have a mean... the instrument must oscillate.

This is in fact completely false. Any instrument that varies in price, ever, has a mean. Even when trending. Oscillation is not a prerequesite for a mean.

 

[Tums]

Quote from slapshot:
I'm done conversing with you, it's not worth my time.

Quote from slapshot:
This is in fact completely false. Any instrument that varies in price, ever, has a mean. Even when trending. Oscillation is not a prerequesite for a mean.

 

[slapshot]

I never said I wasn't going to participate in the thread discussion - and I did not post my comment about the inaccuracy of your statement for your sake, but rather for others in the thread.

I call BS wherever I see it.

 

[Tums]

Quote from Tums:

Some people like to make simple observations,
some people like to make mindless opinions.

Some people are here to prove they are ignorant.

Read my post again, you might learn something.

 

[ej420]

Quote from Tums:

great thread guys. I will incorporate some of the volatility compression in my research.
tums you have been around here for a while and I haven't folloowed your posts but with all due respect you are not adding much substance with bickering and rhetorical questions.