It is important to know your market well and identify which catalysts are drivers for supporting a reversion to the mean trading strategy that you can assign probabilities, time frame and position sizing in constructing a viable investing model.
It is important to know your market well, and identify which catalysts are drivers for supporting a reversion to the mean trading strategy that you can assign probabilities, time frame and position sizing around in constructing a viable investing model. The most important factor in any mean reversion trading strategy is in controlling the risk element, i.e., what is your cutoff strategy for the trade.
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