Discovering the Most Profitable Mean Reversion Trading Exit Strategy

[@robertwestbury]

Jarrod, thank you sincerely. I plan to start live automated trading soon. I wanted to mention I saw a significant improvement in the backtesting of this strategy when adding one additional criterion to the entry rule: 4 consecutive same colour bars, followed by one opposite colour bar => Enter trade on close of opposite colour bar. Let me know your thoughts!

[@wayneflint8077]

The results this way Jarrod is really good. Very well explained.

[@PriceActionDan]

Could you focus some videos on simple day trading strategies, either pure price action patters or with indicators? Would appreciate it and I am sure I am not the only one.

[@TONYMOR]

What I always like to do is see how an optimized strategy works on other currencies in case the tested currency switches behaviour. So I would take your optimised strategy and drop it onto other pairs and see if it's profitable and tradeable without instigating the trots (lol). So would be interesting to see how this works on all other majors.

[@antoniorosado]

00:04 Exit strategy can improve mean reversion performance 02:02 The stop and reverse exit strategy is a potential solution for mean reversion trading. 04:05 Testing different exit strategies for optimal profit 06:14 Analyzing key results like net profit, draw down, and trade duration. 08:34 Efficiency of trading strategies based on average days in trade 10:44 Using an 11-day timed exit is the most effective strategy in minimizing losses. 12:42 Exploring different exit strategies and their impact on trading performance 15:01 Optimizing profit through analyzing different exit strategies 17:35 Different exit strategies can impact net profit and drawdown. 19:55 Using a timed exit strategy can result in smaller overall drawdown.

[@AnthonyGreenman]

Thank you Jarrod. Very helpful and over the long term should help the strategy achieve more winners. I have opted for a 13 day exit in the event of being in a loss.

[@ATR-e4m]

Would you ever do a video to show how the backtesting website you use works like how to create strategies etc on it?

[@DrOigk]

Thanks for your great videos! I had seen a video of yours, there was something about six days. I can't get it together anymore and I can't find the video in all your videos. Can you help me find out which one it could have been?

[@salekabdala4287]

Hi Jarood, thanks for continuing to provide valuable content! I have a question. In exit type 3 you only talk about exiting if we are in losses after 11 days or bars, but how do we exit in profits?

[@AnthonyGreenman]

Jarrod's video from a year ago "Finally! The Mean Reversion Trading Strategy You Have Been Waiting For" explains the various exit strategies from stop and reverse to rsi etc

[@lauris.marcenoks]

Thanks, great video 🏆 Greetings from Latvia 🙌🏻

[@buensomeritano1755]

You should develop for the time period between 11/9/19 to 12/31/22 and use 7/1/23 to present day for out of sample. Or, vice versa. If the strategy can maintain its equity curve in both of these time frames, you've got a winner.

[@serratusx]

How likely is it that this strategy would work on a lower time frame?

[@buensomeritano1755]

Is there a reason you did not test the bailout exit on this strategy?

[@sani0160]

Thanks for sharing 👍

[@danialtzj359]

Thanks Jarrod! Have you stopped using out of sample testing for your own strategies? I noticed you were testing on the entire available data.

[@muragijimanadominique5626]

can this work on lower timeframes as price is fractual ?

[@AJohnson0325]

I know this was tested on currencies but I’ve been looking at mean reversion short strategies on stocks and haven’t found anything that works yet. A stock can go up a whole lot in the 5 days (meme stocks) or whatever is the time exit and blow up an account.

[@jeancarlosgutierrez9256]

hola busque en tu canal pero no encontre alguna estrategia para nasdaq o sp 500 ? realmente he estado buscando pero no he encontrado .saludos

[@lowcorrelation]

hi jarrod, good to see you back! In the '5. Time Exit Only' scenario, if the robot currently has an open buy position and a sell signal appears, does the robot open a second sell position, or does it maintain a limit of one position at a time?

[@AnthonyGreenman]

My understanding is that stop and reverse (new trade in opposite direction) overides all the exit strategies and you would come out of your current trade to take a new position. I think he explains that at the start of the video

[@virtualvessel0]

Thanks Jarrod.

[@jsb847]

by definition, i thought a mean reversion strategy means you exit at the mean

[@covingtoncreek]

No it means that markets tend to revert to the mean over time, so you are going to take advantage of that movement. It doesn't mean you exit at the mean, although you could certainly test this. Otherwise known as a "counter-trend" strategy. You take trades in the opposite direction of the trend. The strategy name refers to entries, not exits.

[@longestnamepwnsall]

You only tested on In-sample though. So yes, it does perform better on the time period you tested on, but you didn't show if it performs better on unseen data.

[@defaultdefault812]

How effective are you at crypto trading?

[@LewieLeway]

Why not go look on his channel and find out?

[@Lillianclopton334]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Katherine Miller.

[@jakeroberts220]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@harveykeitelsean55]

She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.

[@Tupppas]

You trade with Katherine Miller too? Wow that woman has been a blessing to me and my family.

[@Verablake12]

I'm new at this, please how can I reach her?

[@Stevenjones7679]

I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much

[@lastructchure389]

He doesn't care about the structure. Doable on a phone. Interesting.