Reversion To the Mean (RTM) Intraday Strategies

Trend Fader · Dec 21, 2008

I hear a lot of trades talk about reversion to the mean daytrading... anyone care to share some ideas and general strategies that professional traders use??

thanks

nazzdack · Dec 21, 2008

Quote from Trend Fader:

......ideas......?

You would expect price bars on your chart(s) to overlap. Be careful when they don't.

Tums · Dec 21, 2008

Quote from Trend Fader:
I hear a lot of trades talk about reversion to the mean daytrading... anyone care to share some ideas and general strategies that professional traders use??
thanks

Get Bollinger's book: Bollinger on Bollinger Bands.

forsalenyc · Dec 21, 2008

you look at alot of market internals......you double down alot.....you take alot of heat from paper losses.......and finally, you need alot of capital

ammo · Dec 21, 2008

dont exactly trade reversion to the mean,but if you watch uvol/dvol comparison chart and the lead flips back and forth you are likely to have an inside day and can sell previous near highs and same for lows with expextancy of returning to the middle,depends on how we are trendingnon trending

Anti-Hurst · Dec 21, 2008

Quote from Trend Fader:

I hear a lot of trades talk about reversion to the mean daytrading... anyone care to share some ideas and general strategies that professional traders use??

thanks

what most on ET do not realize and are unable to explain to you

luckily I am here and I AM ABLE TO explain to you

mean reversion works, and trend following works

for every mean reversion trader, THERE IS A TREND FOLLOWING trader out there

get it ??????

they both work

NoDoji · Dec 21, 2008

Quote from Trend Fader:

I hear a lot of trades talk about reversion to the mean daytrading... anyone care to share some ideas and general strategies that professional traders use??

thanks

I'm pretty sure RTM is what I do most often (I'm a fairly noob trader, so not exactly sure what this "means").

I wait 20-30 mins for a high and low of the day to be established, then buy at a failed breakdown thru the low, or short near a failed breakthrough of the high, expecting a profitable retracement either way.

Detailed charts and setups in the latter pages of my journal. I think I started posting charts on certain days around this page: http://www.elitetrader.com/vb/showthread.php?s=&threadid=132626&perpage=6&pagenumber=16

tradingbug · Dec 21, 2008

Quote from ammo:

dont exactly trade reversion to the mean,but if you watch uvol/dvol comparison chart and the lead flips back and forth you are likely to have an inside day and can sell previous near highs and same for lows with expextancy of returning to the middle,depends on how we are trendingnon trending

I know some like to use Trin.....have you found any value in charting the A/D in conjunction with up volume/down volume?

ammo · Dec 21, 2008

i used to watch trin but it somehow quit giving accurate relationships to the market,so i ignore it and i've never looked at a/d,i prefer the uvol/dvol ,it has about 4 scenarios,up trend.down trend ,sideways and strong trending days,simplicity

ammo · Dec 21, 2008

Quote from NoDoji:

I'm pretty sure RTM is what I do most often (I'm a fairly noob trader, so not exactly sure what this "means").

I wait 20-30 mins for a high and low of the day to be established, then buy at a failed breakdown thru the low, or short near a failed breakthrough of the high, expecting a profitable retracement either way.

Detailed charts and setups in the latter pages of my journal. I think I started posting charts on certain days around this page: http://www.elitetrader.com/vb/showthread.php?s=&threadid=132626&perpage=6&pagenumber=16

doji,u can get that mean number on charthub .com,someone always posts the mp chart for several indexes,several times a day,the widest area is the mean