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Quick Short ๐Ÿ’ก

A backtested ๐—œ๐—ป๐˜๐—ฟ๐—ฎ๐—ฑ๐—ฎ๐˜† ๐— ๐—ฒ๐—ฎ๐—ป ๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐˜€๐—ถ๐—ผ๐—ป trading strategy ๐Ÿ“ˆ ๐Ÿ“Š

Threadย ahead ๐Ÿงต

RT to get access to our beta program link in your DM ๐Ÿš€
(You must be following to receive the DM)

What is Reversion to Mean? ๐Ÿง

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.


Extreme price moves away from the mean and is hard to sustain for extended periods.

๐—˜๐˜…๐—ฎ๐—บ๐—ฝ๐—น๐—ฒ: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


๐Ÿ”ธ Hypothesis:

1๏ธโƒฃ Whenever stocks have a large opening gap, they tend to come back to the mean levels.
2๏ธโƒฃ Backtesting is done on Nifty500 Universe and probabilities are calculated on stocks which have highest chance to fall based on historical data.

๐˜Œ๐˜น๐˜ข๐˜ฎ๐˜ฑ๐˜ญ๐˜ฆ:

๐Ÿ”ธ 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.
Six tools that will change the way your write code: ๐Ÿงต

1๏ธโƒฃ HarperDB

Deciding between SQL and NoSQL? Use HarperDB as it provides you the functionality of both.

Access data using API endpoint.

๐Ÿ”—
https://t.co/qf5CalexfA


2๏ธโƒฃ Visual Go

Visualizing data structures and algorithms

๐Ÿ”— https://t.co/b8YeMYdOaf


3๏ธโƒฃ Extends Class

Syntax validators, code formatter, testers, HTTP clients, mock server, and much more.

๐Ÿ”— https://t.co/GlKjoBnzqg


4๏ธโƒฃ Codeshare

Share Code in Real-time with Developers. An online editor for teaching and interviewing.

๐Ÿ”— https://t.co/2m1Ne3KJRK