Mean reversion works, but can you stand the pain?

April 17th, 2015, 04:24 PM

gregid

No matter how mean that would be I would rather go momentum in such case

let's hope they don't announce sth like that on a weekend & grill hundreds of long trades.

anyhow, enough of derailing this thread - you can find me in my journal if you feel like posting on

April 25th, 2015, 02:21 PM

ElChacal

I agree that any strategy should have some "trend filter", pure counter-trend is a killing tomato.

@shodson what indicators do you use? channels, patterns, oscillators?

For daily charts a I use the 200-ma pretty religiously, it just works so well with many strategies. Sometimes if I can find a better MA period through optimization but the 200 works almost as well as the optimal ones so I just use the 200 because it's so robust and because it's an important psychological level followed by many other traders.

February 8th, 2019, 03:05 AM

shodson

For daily charts a I use the 200-ma pretty religiously, it just works so well with many strategies. Sometimes if I can find a better MA period through optimization but the 200 works almost as well as the optimal ones so I just use the 200 because it's so robust and because it's an important psychological level followed by many other traders.

Hello shodson,

What do you think about the MA 50, 20 and 10?
Are they as reliable as the MA 200?

Thanks

February 8th, 2019, 04:15 PM

Carl123

Hello shodson,

What do you think about the MA 50, 20 and 10?
Are they as reliable as the MA 200?

Thanks

For mean reversion swing trading? No.

Mean reversion works, but can you stand the pain?

Discussion in Psychology and Money Management

Mean reversion works, but can you stand the pain?