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Mean Reversion Strategy

Sharing a mean reversion strategy for trading the stockmarkets.

Entry rules:

  • 2 period RSI < 10

  • Stockprice > 125 SMA

  • The stock current 10 day ATR is within top 30% readings over the past 100 days (ATR-Rank > 70)

Trade entry:

  • place a limit buy order 0.33* the 10 day ATR below the low

Trade exit:

  • Stockprice closes above the 5 day SMA

  • then sell on market open the next day

A trading system only works if you respect the rules, and be consequent. You need to add strict money management rules! DYOR and good luck!