Reversion to the mean only trading...

Discussion in 'Index Futures' started by MarkBrown, Nov 16, 2020.

  1. I buy when i think te market is going to go higher and I add very quickly as it goes higher or lower based on my perception of the market. If I am in a trade i will only add to a loser if it si a very quick scaalp and even then my loser is only a a point or 2 and if that fails then I am out.

    If I buy and add to it very rapidly as it wins or is winning then i quickly piece out or exit my positions and if it get to a certain point below my highest profit mark during the (TRADE SET) then i exit all and rapidly and i am on to the next one. call it flow call it overtrading but it is not hindsight that is for sure i am always anticipating the mkt with my trade entry and reacting to what the market does with my trade exits. this way I am not guessing exits the mkt makes them but I am guessing entry
     
    #111     Jan 9, 2021
  2. also since this is the mean reversion thread I am looking to buy bottoms which should revert back to the mean but then again there are just as many means as there are traders
     
    #112     Jan 9, 2021
  3. They

    They

    Is that automated or are you clicking your mouse to take those trades?
     
    #113     Jan 9, 2021
  4. padutrader

    padutrader

    not me

    i know nothing about coding

    but it can be done

    BUT WHEN I SAY SIMPLE I DO NOT MEAN CERTAIN.

    but i say there is an edge; and casinos thrive on a very small edge.

    so why cant traders?

    just see historical charts and the code the thing

    maybe everyone is thinking it cannot be that simple

    i make money with it.

    after trying everything else i have gone 100 years back to the future

    and one more thing: i can outsource the coding but the reason i trade NOW is not for the money....i trade nowadays to be occupied...to have something to wake up to.
     
    Last edited: Jan 10, 2021
    #114     Jan 9, 2021
  5. padutrader

    padutrader

    hahaha

    yes we do not know which mean it is reverting to

    i prefer to wait till both price and mean are the same and then decide the trade.

    trading the actual pull back to the mean [ is this what mean reversion means? ] is a trade which does not have a high win rate....so you need a tight stop and big reward... to make it work

    also it may not revert at all....the mean may revert to the price:

    meaning if the price enters a [very] narrow range, for long enough time, the mean will tend to move to the price
     
    Last edited: Jan 10, 2021
    #115     Jan 9, 2021
  6. padutrader

    padutrader

    does it make a difference?

    as is obvious, i know nothing about automation

    i understand that anything that follows rules may be automated....but i find it difficult to believe, after watching markets for 40 years, and trading for 30,that markets follow any rules.
    it may be i am stupid or blind
     
    #116     Jan 9, 2021
  7. padutrader

    padutrader

    here it will not work....https://www.tradingview.com/x/CX5H8gzO/

    but here where you can see the market is swinging rather than ranging works well
    https://www.tradingview.com/x/9putPxZr/

    if you do not get the idea i will give a few more examples, on demand only
     
    #117     Jan 10, 2021
  8. Mysteron

    Mysteron

    You've hit the nail on the head there, which mean indeed? The answer is that the term "mean reversion" is used very sloppily when the correct concept should be "median reversion". Its so easy to use an indicator to plot a mean of price but then there is the choice of which mean to use and the period. On the other hand a 50% median value in a price range can be very obvious at times, as well as times when price is likely to revert.
     
    #118     Jan 10, 2021
  9. themickey

    themickey

    Ti atuatomates mouwse clicker dicking.
     
    #119     Jan 10, 2021
  10. mouse clicks

    it takes a lot of concentration speed and having a mouse that can scroll quickly.

    im more of a scroll trader that a mouse clicker.
     
    #120     Jan 10, 2021