One of the main challenges with Mean Reversion trading is when to get into a trade, which can have a huge impact on profit and drawdown levels.

How far from the Mean should we wait before considering a trade?

PJ Sutherland shares the approach he uses to:

• Lower drawdowns
• Reduce the role of luck in trading
• Produce performance results that more closely resemble backtest results.

 

Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.