📊 3 Best Mean Reversion Trading Strategies: Backtested Buy & Sell Signals Analysis 📉💡
We’re 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! 🔍
💼 Backtested Trading Rules:
1️⃣ Calculate Average: Compute the H-L average over the last 25 days 📅 2️⃣ IBS Ratio: Calculate the (C-L)/(H-L) ratio daily 📐 3️⃣ Price Band: Create a band 2.25x lower than the high of the last 25 days using the average from point 1 🎯 4️⃣ Go Long: If XLP closes below the band in point 3 and IBS is less than 0.6, go long at the close 🚀 5️⃣ Exit Strategy: Sell when the close exceeds yesterday's high 📈
💰 Investment Results:
$100K invested at the start, compounded till today, has delivered strong returns! 💵📈
🚀 Can the strategy be improved?
Drop your suggestions in the comments below 👇
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