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Better System Trader

178: How to build Mean Reversion trading strategies – Stefan Friedrichowski

Feb 10, 2021
01:30:57

So, the verdict is in…

Afrotechmods says:

“I think this is the most informative guest you have ever had! Thank you both.”

What am I talking about?

On this episode of BST Live, Stefan Friedrichowski from JFD Bank joined us to discuss “how to build Mean Reversion trading strategies”, and it was an absolute cracker! Even if you’re not a mean reversion trader, you have to see this one. 

Here’s a small sample of the tips and insights you’ll discover:

  • The "alarm signal" that got Stefan interested in Mean Reversion trading,
  • How to determine if a market is good for Mean Reversion or not,
  • How to reduce noise and increase the information content in trading charts, 
  • The danger of using a Mean which moves too fast,
  • How the distribution of 2 bar combinations gives clues about potential trading edges,
  • Adjusting the Mean length based on the timeframe of the chart, 

Stop-loss vs take profit size, trading without a stop loss, degrees of freedom, statistical significance, sample size, entries, exits, and loads more.

 

Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

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