Mean Reversion Pro
Mean Reversion Pro identifies statistically significant price deviations from the mean and trades the expected reversion. Using Bollinger Bands combined with RSI and volume analysis, this strategy enters positions when price has deviated significantly from its mean and shows signs of reversal. Strict risk management ensures losses are contained when mean reversion fails.
Strategy Overview
Strategy Parameters
Moving average lookback for band calculation
Standard deviation multiplier for bands
Oversold/overbought confirmation levels
Exit at middle Bollinger Band
Entry Signals
Advantages
- High win rate in suitable conditions
- Clear entry and exit points
- Lower drawdown profile
- Frequent trading opportunities
Risks to Consider
- Extended trends can continue beyond bands
- Breakout scenarios invalidate the strategy
- Requires accurate regime detection
Related Strategies
Important Risk Information
Past performance does not guarantee future results. All trading strategies involve risk, and you may lose some or all of your invested capital. The win rates and Sharpe ratios shown are based on backtesting from 2015-2024 and may not reflect future performance. Always use proper position sizing and risk management.