Return to Revisions

I don't know of any statistical basis for the phenomenon of mean reversion. It really defies the rule of independence which is usually part of statistical methods. Other than that, it is also counter to momentum investing which go against precisely what you are intending to do. Countering that with the positive skew of long term stock price movement, I think that you might back some money from it, but would be much less that what you would make with trend follow. Also you would be subject to the same risks as the general stock market. I would only trade it with stop losses.