Reversion To the Mean (RTM) Intraday Strategies

Not sure how RTM is going to help intraday trading when the VIX looks like she is pulling in. Going forward, we could see less volitility, Zero Trend and Sidways moves. IMHO Risky trading and getting chopped to death.
 
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
More...

In the past, you use to mention (several times) that you personally knew many professional traders and that some were extremely profitable in comparison to ET members...

What happen. :confused:

Mark
 
Quote from IronFist:
I'd be open to discussion on how the BBandwidth indicator can be used for this.
More...

it helps if you have an understanding of Bollinger Bands.

a good place to start is his book -- Bollinger on Bollinger Bands.
it is a thin book... very easy to read.
 
I don't know about day trading RTM, but what looks like a good swing trade would be Gold To Silver.
Gold has been out performing silver in a big way since last summer. Seems like gold should pull back, from a technical stand point.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2247655
 

Attachments

Quote from Tums:

it helps if you have an understanding of Bollinger Bands.

a good place to start is his book -- Bollinger on Bollinger Bands.
it is a thin book... very easy to read.
More...

i have that book. i read it months ago. maybe i should go thru it again.
 
Quote from IronFist:

i have that book. i read it months ago. maybe i should go thru it again.
More...
I never was enamored with Bollinger Bands....the logic seems kind of stupid: Whenever there is a rapid move in one direction, the OPPOSITE BAND gets expanded and then it is a mile away from the price action.
So why even show it then ?
Look at August time-frame on that chart...
 
Quote from Trend Fader:

...share some ideas...
More...
1. Check through indicator/pattern how momentum in a time frame interacts with the mean-reversion in the next higher time frame
2. If your'e into tape reading, nice volume patters at transitory reversal points.
 
Quote from syswizard:
I never was enamored with Bollinger Bands....the logic seems kind of stupid: Whenever there is a rapid move in one direction, the OPPOSITE BAND gets expanded and then it is a mile away from the price action.
So why even show it then ?
Look at August time-frame on that chart...
More...

Most people who haven't read the book would say the same thing.
 
So it looks in that one pic like you're entering a BBand trade expecting it to revert to the mean based on the slope of the BBandwith indicator changing to "down."

I'm looking at a chart of the ES with 20,2 as the settings for each indicator and it seems like it works well sometimes, but also gives lots of false (or very late) signals.

I'll post a pic if you want.

Is there more to that strategy than I ascertained from the pic you posted, Tums?
 
You must log in or register to reply here.
Back
Top