Mean reversion is a concept in finance that suggests, after an extreme price move, stock prices tend to return back to normal or average levels.
Prices do move away from the mean sometimes but revert to the mean price over time.
Quick Short ๐ก
A backtested ๐๐ป๐๐ฟ๐ฎ๐ฑ๐ฎ๐ ๐ ๐ฒ๐ฎ๐ป ๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป trading strategy ๐ ๐
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Mean reversion is a concept in finance that suggests, after an extreme price move, stock prices tend to return back to normal or average levels.
Prices do move away from the mean sometimes but revert to the mean price over time.
๐๐ ๐ฎ๐บ๐ฝ๐น๐ฒ:Extreme Gap-ups and Gap-downs
Stock tends to come back to intraday mean prices
or
Longer term moving average (100 and 200 ema) depending on the time frame you are looking at
1๏ธโฃ Whenever stocks have a large opening gap, they tend to come back to the mean levels.
2๏ธโฃ Backtesting is done on Nifty500 Universe and probabilities are calculated on stocks which have highest chance to fall based on historical data.
๐ธ So out of say 10 stocks that have opened Gap-up , each stock is ranked based on a proprietary algorithm and the stock with the highest odds to revert to the mean is selected.
๐ธ Enter at 9:16 to 9:20
๐ธ Stoploss Max 10% from entry price for the day
๐ธ Capital : โน1.5 Lakh (Suggested to include drawdowns) excludes the availble margin by broker
๐ธ Capital Deployed : โน1 Lakh Max
๐ธ Here are the charts that show trades where stop-losses were hit.
๐ธ Model was trained for 7 years where all type of market conditions (Bullish, Bearish & Sideways)were covered and a volume filter was applied which filtered 257 stocks from 500.
๐ธ Example : In March 2022 we made 29000 on โน1 lakh and we lost โน18k in december 2021
Ex:
๐ธ Stock: #JKIL is given a short at 9:08am you need to take entry by 9:17 at market price & short it intraday
๐ธ Stoploss = 10%
๐ธ Position Size = Total Capital/Stock Price
๐ธ Position Size =โน1,00,000/โน315 = Approx 300 Qty of JKIL
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To people who are under the impression that you can get rich quickly by working on an app, here are the stats for https://t.co/az8F12pf02
๐ ~12000 vistis
โ๏ธ 109 transactions
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I have spent 1.5 months on this app. You can make more $ in 2 days.
๐คทโโ๏ธ
I'm still happy that I launched a paid app bcs it involved extra work:
- backend for processing payments (+ permissions, webhooks, etc)
- integration with payment processor
- UI for license activation in Electron
- machine activation limit
- autoupdates
- mailgun emails
etc.
These things seemed super scary at first. I always thought it was way too much work and something would break. But I'm glad I persisted. So far the only problem I have is that mailgun is not delivering the license keys to certain domains like https://t.co/6Bqn0FUYXo etc. ๐
omg I just realized that me . com is an Apple domain, of course something wouldn't work with these dicks
๐ ~12000 vistis
โ๏ธ 109 transactions
๐ฐ 353โฌ profit (285 after tax)
I have spent 1.5 months on this app. You can make more $ in 2 days.
๐คทโโ๏ธ
I'm still happy that I launched a paid app bcs it involved extra work:
- backend for processing payments (+ permissions, webhooks, etc)
- integration with payment processor
- UI for license activation in Electron
- machine activation limit
- autoupdates
- mailgun emails
etc.
These things seemed super scary at first. I always thought it was way too much work and something would break. But I'm glad I persisted. So far the only problem I have is that mailgun is not delivering the license keys to certain domains like https://t.co/6Bqn0FUYXo etc. ๐
omg I just realized that me . com is an Apple domain, of course something wouldn't work with these dicks
Funny, before the election I recall lefties muttering the caravan must have been a Trump setup because it made the open borders crowd look so bad. Why would the pro-migrant crowd engineer a crisis that played into Trump's hands? THIS is why. THESE are the "optics" they wanted.
This media manipulation effort was inspired by the success of the "kids in cages" freakout, a 100% Stalinist propaganda drive that required people to forget about Obama putting migrant children in cells. It worked, so now they want pics of Trump "gassing children on the border."
There's a heavy air of Pallywood around the whole thing as well. If the Palestinians can stage huge theatrical performances of victimhood with the willing cooperation of Western media, why shouldn't the migrant caravan organizers expect the same?
It's business as usual for Anarchy, Inc. - the worldwide shredding of national sovereignty to increase the power of transnational organizations and left-wing ideology. Many in the media are true believers. Others just cannot resist the narrative of "change" and "social justice."
The product sold by Anarchy, Inc. is victimhood. It always boils down to the same formula: once the existing order can be painted as oppressors and children as their victims, chaos wins and order loses. Look at the lefties shrieking in unison about "Trump gassing children" today.
Funny there are those who think these migrant caravans were a FANTASTIC idea that's going to take the immigration issue away from you.
— Brian Cates (@drawandstrike) November 26, 2018
Like several weeks watching a rampaging horde storm the fences & throw rocks at our border patrol agents & getting gassed = great optics!
This media manipulation effort was inspired by the success of the "kids in cages" freakout, a 100% Stalinist propaganda drive that required people to forget about Obama putting migrant children in cells. It worked, so now they want pics of Trump "gassing children on the border."
There's a heavy air of Pallywood around the whole thing as well. If the Palestinians can stage huge theatrical performances of victimhood with the willing cooperation of Western media, why shouldn't the migrant caravan organizers expect the same?
It's business as usual for Anarchy, Inc. - the worldwide shredding of national sovereignty to increase the power of transnational organizations and left-wing ideology. Many in the media are true believers. Others just cannot resist the narrative of "change" and "social justice."
The product sold by Anarchy, Inc. is victimhood. It always boils down to the same formula: once the existing order can be painted as oppressors and children as their victims, chaos wins and order loses. Look at the lefties shrieking in unison about "Trump gassing children" today.