Strategies that assume price will revert to an average or equilibrium.
This scope is designed to help you build a practical understanding of Mean Reversion. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
An examination of mean reversion strategies under crowding pressure, including definition, core mechanics, sources of crowding, execution challenges, and risk controls within structured, repeatable trading systems. The discussion emphasizes diagnostics and high-level examples without providing trade signals or recommendations.
A rigorous examination of how mean reversion strategies can be framed around indicator states versus raw price behavior, including core logic, measurement choices, risk controls, and a high-level operational example suitable for structured, repeatable systems.
An in-depth explanation of how to size positions within mean reversion strategies, including the logic behind sizing choices, portfolio integration, and risk management considerations, with practical, high-level examples for structured trading systems.
An in-depth discussion of frequent errors in mean reversion strategies and how these strategies fit within structured, repeatable trading systems. Focus on logic, risk, data, and execution without specific trade signals or recommendations. Includes a high-level operational example.
An in-depth examination of the boundaries and failure modes of mean reversion strategies, including their statistical assumptions, regime sensitivity, execution frictions, risk management, and how to embed them in structured trading systems without prescribing signals or recommendations.
