Mean reversion strategy opinion vs random walk

(Last Updated On: April 10, 2020)
Learn the Secret

Get  our 2 Free Books

Get these now which land directly to their inbox.
Invalid email address

This will be a long article but see the random walk at the end

Free trading books

or learn algo trading

Here is a Quantopian Python example using Gibbs

Have you ever heard of standard deviation reversion like Bollinger band?

Simplest mean reversion is moving averages but how effective is it and which timeframes work best for crypto? You can pick 5 best long and 5 worst outlook for pair trading in crypto but Correlated relationships don’t last too long due to crazy volatile moves.

Qunatopian has some interesting discussion on other mean reverting trading ideas

RSI2 and Long stocks at minus two times Average True Range(ATR) looks interesting? As for moving average, you need to find the fight parameters for moving average against which timeframe?

beast potential?

This could be extra complicated with overlaying linear regression over mean reversion?

Is this useful with typical mean reversion?

Hurst Exponent is most reliable to find when a time series is random walk (Geometric Brownian Motion), mean revert, and trend follow/momentum.

decent entry/exit description with basic mean reverting strategies

Another easy Quantopian Python logic example

Z-Score can be highly reliable to measure cointegration

Some say it is possible to beat random walk but I doubt that

I am no expert here from a math point of view but I believe in this headline which means avoid random walk

TIP to Find decent articles with DuckDuckGo by searching:
Find mean reverting strategy ideas

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
This entry was posted in Bitcoin Crypto Currency, Quant Analytics and tagged on by .

About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at