Posts Tagged by mean reversion
3 Day Low in ETF’s
| November 1, 2013 | Posted by Oddmund Grotte under strategies |
Larry Connors have written a strategy called the double 7. This is a very simple strategy with just two rules. The less rules, the better, because less probability of curve fitting. This strategy is based on 7 days low (and high for exit), but in my testing it seems to work very well on all…
When SPY Diverges From Recent High And Low: A Daytrading Strategy
| February 3, 2013 | Posted by Oddmund Grotte under daytrading, strategies |
S&P 500 has historically a strong tendency to revert to the mean. I’m looking to find a way to fade the gap. My research has indicated that fading the gap is best after a strong move to either direction. Here are the criterias for a reasonable solid fade the gap strategy: Calculate a 25 day…
Two Big Down Days In A Row In SPY
| November 11, 2012 | Posted by Oddmund Grotte under strategies |
On thursday we had the second “big” down day in a row in SPY, with two days in a row with more than 1% each day. This does not happen very often. Knowing that SPY tends to revert to the mean: Can we make money by going long on the close of the second day?…
The Trend Is Not Your Friend In SPY/S&P 500 (and other stock indices)
| August 14, 2012 | Posted by Oddmund Grotte under strategies |
I guess most traders have heard about that “the trend is your friend”. Personally I close to never trade on trends, I go the opposite way: buy weakness and sell strength. However, this depends on the instrument you trade and of course on the time frame. In general most currencies and commodities show a tendency…
A New Potential Daytrading Strategy
| August 6, 2012 | Posted by Oddmund Grotte under daytrading, strategies |
Over the last several months I have been looking into a new potential daytrading strategy. This one looks into more illiquid stocks and therefore I won’t reveal the strategy: It’s simply not enough volume for many traders to trade the same. So why do I bother to publish it? I would like to show the…
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