Recommendations for Mean Reverting Chart Indicators

Discussion in 'Trading Software' started by rolando87, Sep 15, 2021 at 12:28 AM.

  1. Hey guys,

    I'm trading a mean reversion strategy and looking for a more objective method of selling when it gets "high" and buying when it gets "low". Mostly been using a price chart with no indicators at all and discretionarily choosing these buy and sell levels but now looking for some other more robotic way of doing it.

    I need to be able to code the indicator in excel as well.

    I've used keltner channels in the past and prefer it way more than bollinger bands but also open to those stochastic type indicators that appear below the chart usually.

    Anyone want to share their favorite mean reversion chart indicators tips? Thanks
  2. maxinger


    There are 'magical' indicators that you can purchase.
    Sellers are selling it because there is demand for it.
    You will definitely get recommendations on 'magical' indicators in this forum.

    you already have some experience using a price chart with no indicator.
    Stick with it and try extremely extremely hard.
    Don't expect to see results in just a few weeks/months/years....

    In trading, there is no shortcut.
    So stop looking for a 'magical' indicator.
    Last edited: Sep 15, 2021 at 1:38 AM
    KCalhoun and CALLumbus like this.
  3. Real Money

    Real Money

    Using TWS and ThinkorSwim.

    VWAP, LRMA, RMF, KAMA, Wilder's

    Can do transformation and linear combination of price and indicator with thinkScript.

    Also have real-time chart generation in excel with the TWS API and a VBA script.

    Coding a real-time chart or just data steams/tables or what? Using what language?

    Excel is awesome.
  4. What is the RMF indicator? Which one of Wilder´s indicators do you mean?
  5. Quiet fool, I'm not looking for a magical indicator. Now piss off with your stupid comments.
    henry76 likes this.
  6. Yea I stream live price data info into Excel and create live charts as I go, so I'm looking to experiment with indicators on this data and see if they can help increase my trading frequency.
  7. I have a bunch of successful automated mean reversion strategies. I would pay attention to:
    • price: OHLC
    • volatility: ATR, Standard Deviation, Keltner Channels/Bollinger Bands distance below/above and width
    • trend: EMA/SMA, distance away
    • range/reversion: RSI/CCI, ADX
    Try to be creative with them. Do not use them the same way everyone else does.
    Last edited: Sep 15, 2021 at 11:49 AM
    henry76 likes this.
  8. MKTrader


    LOL, this place...Just use RSI, CCI, Bollinger Bands and dozens of other indicators that have been around for decades and show absolutely no edge when systematically tested. You'll be fine.
  9. panzerman


    Try a one-pole Inverse Chebysev highpass filter, followed by an Inverse Fisher transform to normalize the data. No I'm not giving you the details on purpose so that you will have to hustle and learn something new and not have it handed to you on a platter.
  10. ph1l


    One way is fit prices with a parabola plus a sum of sinusoids similar to what was done in this post. The sinusoids oscillate around the parabola, and this lets predicted turning points be detected as they happen and projected into the future.

    This requirement would make the job harder to do.