Mean reversion strategies rely on the premise that extremes in price eventually revert to the mean price over time. They are effective during established markets – bull, bear or sideways – but unfortunately do not perform well during market regime changes or tail events. Tail events are outcomes that have …
Tag: Risk Management
One of the inputs I rely on to control risk is the simple moving average, more specifically, the 200 day simple moving average. This is a deceptively simple technique, but don’t be misled. The quantified results of this indicator make it one of the easiest and most powerful filters around. …