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.
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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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Do Share the above tweet ๐
These are going to be very simple yet effective pure price action based scanners, no fancy indicators nothing - hope you liked it.
https://t.co/JU0MJIbpRV
52 Week High
One of the classic scanners very you will get strong stocks to Bet on.
https://t.co/V69th0jwBr
Hourly Breakout
This scanner will give you short term bet breakouts like hourly or 2Hr breakout
Volume shocker
Volume spurt in a stock with massive X times
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Risks of bat-borne zoonotic diseases in Western Asia
Duration: 24/10/2018-23 /10/2019
Funding: $71,500
@dgaytandzhieva
https://t.co/680CdD8uug
2. Bat Virus Database
Access to the database is limited only to those scientists participating in our โBats and Coronavirusesโ project
Our intention is to eventually open up this database to the larger scientific community
https://t.co/mPn7b9HM48
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https://t.co/u6aUeWBGEN
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4) https://t.co/vuhT6jVItx - Send notes that will self-destruct after being read.
A thread ๐งต
1) Learn Anything - Search tools for knowledge discovery that helps you understand any topic through the most efficient
2) Grad Speeches - Discover the best commencement speeches.
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3) What does the Internet Think - Find out what the internet thinks about anything
4) https://t.co/vuhT6jVItx - Send notes that will self-destruct after being read.
