Reversion To the Mean (RTM) Intraday Strategies

[rolextrader]

Quote from ProfitTakgFool:

You need a strong stomach to use this kind of method.

Don't bother. It gets creamed in backtesting in all markets and timeframes. LOL.

I love it when the snakeoil salesman in this industry use the "it works in all markets and timeframes" line. Sure. And money grows on trees--on all types and seasons.

 

[tomahawk]

Quote from rolextrader:

Don't bother. It gets creamed in backtesting in all markets and timeframes. LOL.

I love it when the snakeoil salesman in this industry use the "it works in all markets and timeframes" line. Sure. And money grows on trees--in types and seasons.

How do you backtest a discretionary method?

 

[syswizard]

Quote from tomahawk:

How do you backtest a discretionary method?

Easy. Just use the replay feature on your trading/backtesting platform. Enter orders, see the results. Mix and match trading months, weeks, days.

 

[forsalenyc]

Quote from ProfitTakgFool:

That's possible but is that a reflection on the method or the trader?

you make an excellent point PTF.....it's probably the trader cuz alot of the very best traders use RTM.

 

[ammo]

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

didnt do any back testing but it works great on these (inside days)days,recognize the day ,use the right stategies

 

[Anti-Hurst]

Quote from rolextrader:

And they also both fail; in fact, miserably. So much so that 95%+ traders lose money, including you I bet.

oh you can bet, you can bet

just don't bet a lot

 

[rolextrader]

Quote from Anti-Hurst:

oh you can bet, you can bet

just don't bet a lot

 

[smilingsynic]

Every intraday trader who has posted here on ET about losing gobs and gobs of money (10, 50, 100K or more) has been a mean-reversion fader who averaged down.

I would use mean-reverting strategies only on a longer-term basis.

 

[riskfreetrading]

all trading is either: mean-reversion, extension from mean, or the same as mean. the mean is not understood neither in its nature nor is it looked at at the right instant and with the right time frames.

put some magnifyers on your mind so you can see better, and you should be able to see what I see.

 

[riskfreetrading]

Quote from Anti-Hurst:

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

you understand one thing, but you miss multiple other things. With time you may see it. I give you all time you need to find out. How about 25 years after you depart?