How to Identify Mean Reversion Trading Levels inspired by Jim Simons

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Күн бұрын

In this video I show you step by step how to create a Mean Reversion Trading Strategy. I was inspired after studying the work of hedge fund manager Jim Simons.
I look closely into the movement and behaviour of EUR/USD to create the rules for this strategy.
All the testing is done using MultiCharts.
Data is from Oanda.
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WEBSITE: www.thetransparenttrader.com/
EMAIL ME: jarrod@thetransparenttrader.com
DISCLAIMER:
I am not a financial advisor and I am not offering you financial advice. I am not regulated in any way. The purpose of the content I provide is for educational purposes only.
Any information you receive is based on my own knowledge and experience in the financial markets and how you act on the information provided is your own responsibility.
I cannot be held responsible for any losses you may incur as a result of ideas taken from my content provided.

Пікірлер: 15

@davemakesmagic 8 ай бұрын

This was really, really helpful for me personally. Thanks SO MUCH for sharing your whole process! Great insight and understanding (and real life practical example) of what it's like to come up with an idea, test and develop it, and then decide if it's actually worth trading or not. I so appreciate you Jarrod and all you do!!

@TheTransparentTrader 8 ай бұрын

Glad it was helpful!

@OneCreator87 7 ай бұрын

Great stuff as always, I commend your hard work and professionalism.

@mbuhhh3605 8 ай бұрын

This kind of video is very helpful. Most other trading channel never talk about development process. Thank you sir. I hope there will be other development process video in the future. In my opinion, this type of video is what help other people to be more successful than just showcasing strategies

@TheTransparentTrader 8 ай бұрын

Thanks for the feedback and I'm glad it helped.

@davidmadle5007 8 ай бұрын

Very interesting food for thought thanks for this

@mbt724 6 ай бұрын

Amazing data and research!

@mattlewis-UK 8 ай бұрын

nice work Jarod

@eto895 8 ай бұрын

Thank you..the video is helpful. Can I suggest to you to make a video about strategy using squeeze bollinger band and keltner .. I believe a good example is TTM squeeze pro indicator but i believe it can be coded in powerlanguage easily and to make it as a strategy.

@jt-oz 8 ай бұрын

Jarrod, in terms of methodology, when you test a strategy against different pairs, do you like to see it working well against all pairs, or are you happy for a strategy to work on some pairs, discarding the non performing pairs? I would not personally expect a strategy to work as well on all pairs, however do you consider this an important element of robustness testing? Thanks mate.

@TheTransparentTrader 8 ай бұрын

I find it extremely difficult to find 1 strategy which works well on multiple pairs with the same parameters. From lots of testing it appears obvious to me that the Forex markets don't all move in a similar way to each other. Going by experience, I've made money on strategies which work on one pair only. So I'm happy to trade a strategy which only works on one or a very few pairs.

@user-xl7lq8dl7u 8 ай бұрын

This may seem like splitting hairs; your may wish to try using the median rather than the mean. I have successfully used a dynamic standard deviation and the median, and found that median offered a 6-10% improvement over the mean.

@user-xl7lq8dl7u 6 ай бұрын

I should note that you must be careful that the distribution is not bi modal, this occurs rarely but can happen. In addition if the median shifts too far away from the mean due to major changes of character of the market it is important to take this into account. For example in the last while various interest rate shifts were major disruptive events, and changes the Fed has made with respect to treasury issues. It is important to consider that statistical methods rely on the system exhibiting the same behavior over time. BUT if there is a shift in economic policy the curve can change radically.