How To Profit By Trading Against The Trend (Mean Reversion)
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- เผยแพร่เมื่อ 29 พ.ค. 2024
- My personal Trading Strategy is trend continuation through a breakout, however many traders prefer to trade when prices move too far away from the average, otherwise known as the mean.
As with any strategy you need to have good risk management, but when trading against the trend this is even more important.
Hopefully the video provides some food for thought..
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With trading, technical analysis skills alone are not enough; discipline and emotional maturity are also crucial for success. The saying "time in the market vs. timing the market" is a good mindset to have during market fluctuations. Thanks to Marnell English’s insights, daily trade signals, and my dedication to learning, I've been increasing my earnings to over 19btc! in a few months. Keep it up!
@marnellenglish VlA t e I e g r am
It's surprising to see her name mentioned here, she understands every beginner’s intention and fixes you to a trading course that matches your capacity.
Funny how people still believe the only benefit from crypto is holding, day-trading is the real deal. I'm happy I've started learning and earning by utilizing her daily trade signals
Best way to make money is to see what retail is doing and inverse them. Follow commercials and you’ll make bank. Have to pay for the data though.
Hint: Baseline charts. They're all I use now. Although, I only trade micro e-mini's.
thanks for uploading, very nice and informative
Thanks Gareth. Very clear. Nice strategy & relatively low. risk. '
Great vid! I've decided exactly what you concluded, mean reversion is just a bit too complicated for me, at least on individual stocks.....
Thanks Tom 😉
Great video as always
Glad you enjoyed
hello there, I am Vinayak from India and would like to know does your stock scanner includes Indian Stock or just limited to American market?
Best wishes from India.❤
my favorite channel
Thanks!
i was doing this even before i knew it had a name.
Excellent content. I think mean reversion is best traded with bonds, particularly government bonds. The yield trend well and often in a range in a well determined range.
The medallion fund use algorithm to identify cointegrated assets. This is related to pair trading but slightly different.
In my opinion mean reversion is a different formula of buy low sell high.. Adding indicator will not cut it for me.. Break out and risk management yes with lots of experience
Mean Reversion is better in the most liquid fair market in the world: The Futures market. After trading Futures with leverage I’ll never understand why anyone would ever want to trade stocks again. You don’t get the gains you do in Futures, it’s not tax advantaged like Futures, there is no pattern day trading rule, and it’s not as fair due to dark pools existing in stocks where as Futures it’s illegal. After Futures I never looked back.
I’ve been trading stock and options for over a decade since my early 20s. You make a good elevator pitch for futures. I always had the worry in the back of my mind I’d get stuck with 30,000 physical barrels of oil. What products should I trade in the futures markets, currencies or commodities or something else? What would one in terms of capital to start trading and then to successfully trade without your profits getting eaten up by fees?
@@justinkindler9682 It's more difficult than you would think to hold a contract long enough and sign all the paperwork through the broker and various companies to actually be shipped barrels. Also the brokers do a good job of letting you know contracts are about to expire. I wouldn't even worry about CL (Oil) Futures. I'd trade the S&P 500 and Nasdaq E-mini futures. In fact that is all I trade, and the perk is you are trading with leverage plus what I said in the previous post.
Mean reversion does not necessarily mean trading against the trend!
How BB got weekness. If BB sideway, nothing to trade
MACD ❤
Always :-)
*On a normal trading leverage, I still manage to earn $32,000 weekly from my investment of $3,500, wow I can’t wait for bull run to hit the crypto market so I could make more ..God bless expert Mrs Angela Mae*
I've developed a whole strategy using mean reversion.. basically in average any stock in the SP500 index would find itself at 6% distance from it's WMA21... so whenever it reaches 3 sigmas of distance (+18% or -18%) from the WMA21... odds are very very high there will be a reaction.. maybe a dead cat bounce, who cares... it has >70% success rate... the bad thing? when if fails it fails badly... big drawdowns are common... but most of the times you will catch good bounces.. I have it all automated... it works
Any tips for BTC?
can we get super rich solely using this strategy?
There are traders who are very successfull using this strategy. But it is a hard way to trade and you have to carefully monitor your trades.