The Chartist – Mean Reversion Strategy
Mean Reversion is a popular way for traders to capture and profit from short term price movements. This strategy attempts to buy strongly trending stocks that are experiencing brief periods of weakness. Testing in the Australian and US markets across 35,000 symbols over a period of 20-years and shows consistent profitability.
The strategy allows users to generate buy and sell signals, plot charts, run backtests and adjust a myriad of parameter settings without needing to understand coding. Other filters include price, volume, turnover, market regime and two position sizing modes. The code is completely viewable and editable by the user.
What You’ll Learn In Mean Reversion Strategy?
Open source code
Margin capability
Signal exploration
Two position sizing modes
Backtesting
Signal ranking algorithm
Chart plotting
Custom backtester enabled
Custom output for Interactive Brokers API
Rolling window analysis enabled
Historical constituent database testing
Regime filter
Adjustable price, volume and turnover filters
Adjustable entry parameters
Adjustable position sizing
