How to Identify Mean Reversion Trading Levels inspired by Jim Simons

[@davemakesmagic]

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]

Glad it was helpful!

[@mbuhhh3605]

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]

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

[@OneCreator87]

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

[@davidmadle5007]

Very interesting food for thought thanks for this

[@mbt724]

Amazing data and research!

[@eto895]

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.

[@mattlewis-UK]

nice work Jarod

[@FxTrader-XMM]

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.

[@FxTrader-XMM]

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.

[@jt-oz]

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]

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.

[@tinaakino2207]

How about backtesting only the NY session? Nobody can trade 24 hours.

[@TheTransparentTrader]

That's a good idea. My trading is all automated so I am able to trade around the clock!