Strategies that assume price will revert to an average or equilibrium.
This scope is designed to help you build a practical understanding of Mean Reversion. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
Mean reversion is the idea that prices or spreads deviate from a typical level and later move back toward it. This article defines the concept, explains its logic, shows how it fits into structured trading systems, and outlines risk management considerations with practical, high-level examples.
Mean reversion across timeframes combines short-horizon pullbacks with higher-horizon context to build structured, repeatable trading systems. This article defines the idea, explains its logic, outlines risk management, and illustrates a high-level example without prescribing specific signals.
An in-depth explanation of why asset prices tend to revert toward a reference value, how this logic underpins structured mean reversion strategies, and the risk controls required to deploy such systems responsibly. The article covers economic mechanisms, statistical structure, system design, and high-level examples without prescribing signals or tr…
An academically grounded overview of range-bound markets as a mean reversion regime. Learn how the concept fits into structured, repeatable trading systems, including logic, regime identification, and risk management, with a high-level example that avoids specific trade instructions.
A rigorous overview of the statistical foundations behind mean reversion, how it can be structured into repeatable trading systems, and the key diagnostics, risks, and implementation checks that support disciplined practice without prescribing signals or recommendations.
A rigorous introduction to overextension and reversion as a mean reversion strategy class, including definitions, economic logic, measurement choices, risk controls, and a high-level example of how a structured system operates without prescribing trade signals.
An in-depth explanation of how mean reversion interacts with volatility to form structured, repeatable trading systems, including definitions, design logic, risk management, and a high-level operational example without trade signals or recommendations.
A rigorous examination of how risk management shapes mean reversion strategies, including the statistical basis, common failure modes, sizing techniques, stop design, and the controls required for structured, repeatable trading systems without prescribing trade signals or recommendations.
An in-depth explanation of false reversions within mean-reversion trading, why they occur, how they can be modeled inside a structured system, and the risk controls required to handle their distinctive distribution of outcomes. No trade signals or recommendations are provided.
A rigorous introduction to mean reversion across asset classes, covering the economic intuition, statistical construction of spreads, system design, risk controls, and high-level examples without trade signals or recommendations. Ideal for readers building structured, repeatable trading processes.
