Reversion To the Mean (RTM) Intraday Strategies

Discussion in 'Strategy Development' started by Trend Fader, Dec 21, 2008.

  1. I hear a lot of trades talk about reversion to the mean daytrading... anyone care to share some ideas and general strategies that professional traders use??

    thanks
     
  2. You would expect price bars on your chart(s) to overlap. Be careful when they don't. :cool:
     
  3. Tums

    Tums

    Get Bollinger's book: Bollinger on Bollinger Bands.
     
  4. you look at alot of market internals......you double down alot.....you take alot of heat from paper losses.......and finally, you need alot of capital
     
  5. ammo

    ammo

    dont exactly trade reversion to the mean,but if you watch uvol/dvol comparison chart and the lead flips back and forth you are likely to have an inside day and can sell previous near highs and same for lows with expextancy of returning to the middle,depends on how we are trendingnon trending
     
  6. what most on ET do not realize and are unable to explain to you

    luckily I am here and I AM ABLE TO explain to you

    mean reversion works, and trend following works

    for every mean reversion trader, THERE IS A TREND FOLLOWING trader out there

    get it ??????

    they both work
     
  7. NoDoji

    NoDoji

    I'm pretty sure RTM is what I do most often (I'm a fairly noob trader, so not exactly sure what this "means").

    I wait 20-30 mins for a high and low of the day to be established, then buy at a failed breakdown thru the low, or short near a failed breakthrough of the high, expecting a profitable retracement either way.

    Detailed charts and setups in the latter pages of my journal. I think I started posting charts on certain days around this page: http://www.elitetrader.com/vb/showthread.php?s=&threadid=132626&perpage=6&pagenumber=16
     
  8. I know some like to use Trin.....have you found any value in charting the A/D in conjunction with up volume/down volume?
     
  9. ammo

    ammo

    i used to watch trin but it somehow quit giving accurate relationships to the market,so i ignore it and i've never looked at a/d,i prefer the uvol/dvol ,it has about 4 scenarios,up trend.down trend ,sideways and strong trending days,simplicity
     
  10. ammo

    ammo

    doji,u can get that mean number on charthub .com,someone always posts the mp chart for several indexes,several times a day,the widest area is the mean
     
    #10     Dec 21, 2008