# Mean Reversion Strategy

By [Raypok](https://paragraph.com/@raypok) · 2022-08-06

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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!

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*Originally published on [Raypok](https://paragraph.com/@raypok/mean-reversion-strategy)*