MEAN REVERSION VS TREND FOLLOWING 💡

6 Comments

  1. Good explanation. I would add that decent mean reversion opportunities are less frequent. You can go weeks without getting a decent short or mid duration setup. Even intraday doesn't produce every day opportunities because many days fall well within the expected move, and even if price exceeds said expected move, there may be no time left in the day. Trend following is something that can be done every day on any time scale. Find your regression and roll with it. They both have their place and usefulness though.

  2. I would so like to take you for a pint, drinks on me, and I'll pay for your taxi home!

    Thanks Mark, ace teacher, learned more from you and your team than anyone, anywhere else!

  3. So, maybe mean reversion for markets moving sideways, and trend following for trending markets?

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