๐ 3 Best Mean Reversion Trading Strategies: Backtested Buy & Sell Signals Analysis ๐๐ก
Weโre sharing free mean reversion strategies, showcasing why this approach works and the best markets for these trading techniques. Plus, we provide some historical backtesting for credibility! ๐
๐ผ Backtested Trading Rules:
1๏ธโฃ Calculate Average: Compute the H-L average over the last 25 days ๐ 2๏ธโฃ IBS Ratio: Calculate the (C-L)/(H-L) ratio daily ๐ 3๏ธโฃ Price Band: Create a band 2.25x lower than the high of the last 25 days using the average from point 1 ๐ฏ 4๏ธโฃ Go Long: If XLP closes below the band in point 3 and IBS is less than 0.6, go long at the close ๐ 5๏ธโฃ Exit Strategy: Sell when the close exceeds yesterday's high ๐
๐ฐ Investment Results:
$100K invested at the start, compounded till today, has delivered strong returns! ๐ต๐
๐ Can the strategy be improved?
Drop your suggestions in the comments below ๐
#BinanceLabsInvestsLombard #TeslaTransferBTC #technical_analysis