Correct Way to Trade Mean Reversion Strategies

[@TheTransparentTrader]

Guys, I hope you find this insight into mean reversion trading interesting and avoid the mistakes made by using it on the wrong markets and timeframes.

[@randomtv8550]

Hey, Thanks! and keep up your great job! It would be very kind if you demonstrate things while talking about them. I find it very hard to understand by only listening to the topic.

[@TheTransparentTrader]

@@randomtv8550 Yes I understand. Next time I may show a demonstration on the charts or draw one out.

[@philpreston6406]

Hi Jarrod, Good video. I Once traded the NZD/USD I put a simple 20 m.a on my chart. On the day, I took a short on this trade, price was some 350 points above the highest point on the 20.m.a. I suspected the NZD was really overstretched. The next day I closed out the trade for over 300 points. On Forex, I wouldn't ever trade this system unless PRICE is Really overextended 300 points minimum from top of the 20.m.a to current price.( and using the Daily time frames)

[@laureanoralon3880]

Thank you for this. I've been trying the mean reversal strategy on EURCHF with positive results.

[@FXCORRELATOR]

Try AUDNZD for mean reversal.....those guys are like glue mostly .....let NZD converge back towards AUD....but yiunwont see that without understanding and using strengthmeters ....N

[@OneCreator87]

That's right my friend, that's a gold nugget you have there :)

[@OneCreator87]

Also AUDCAD and EURGBP (WITH EXTRA CAUTION)

[@FXCORRELATOR]

In forex trading some currencies are suited to mean reversion and some are trenders .....personally I like yen gbp and Cad in trend strategies ......Euro aud and usd are good for mean rev .......

[@yia73]

Hi I tried to automate this strategy like selling the seventh candle after up trend and vice versa but didn't go well

[@nq875]

Thanks for this Jarrod, mean reversion is a strategy I like but did notice the different results on different markets, this has clarified why for me! Nick

[@TheTransparentTrader]

HI Nick, different strategies work completely differently across different markets! It would be nice if one strategy worked across all, but that's just not the case. Test each strategy on each market to make sure it works.

[@nq875]

@@TheTransparentTrader Hi Jarrod, yes, I saw your recent video on the fact we need different approaches. I also bought your course on Trading Halls of Fame, working my way through it!

[@TheTransparentTrader]

@@nq875 Great! Look out for tonight's video. Another one on mean reversion.

[@nq875]

@@TheTransparentTrader Great, look forward to it!

[@TheTransparentTrader]

@@nq875 I'm always looking for the most helpful videos ideas. Do you have any requests you would find useful?

[@JohnSmith-ms3wb]

Thank you. Can't wait to try it.

[@tryzxl]

Can this be used for individual stocks and indices?

[@TheTransparentTrader]

Yes. But make sure you test any market and strategy yourself before trading to understand whether and how it works.

[@fookmee]

Hi J!! Please make a few videos of scalping if you can. Thanks!

[@Peter_Derby]

The SP has an very steep upward bias, thus mean reversion works well. Have you tried this on more "range bound" markets like various commodities ?

[@TheTransparentTrader]

You're right about the S&P and the upward bias. I currently trade mostly FX so no haven't tested out on many commodities.

[@wsjalerts]

USDJPY do the opposite and voila, returns even better than EURUSD 😀

[@OneCreator87]

Add extra trades = $$$

[@sommi888]

🧡💛💚💙 Please help us trade Crypto with these strategies... i appreciate it man. Anything on scalping (from 1min to 15min timeframe) , either trend or mean reverty... thanks Btw Im a discretionary trader 🧡💛💚💙