Better System Trader

133: Building Mean Reversion trading strategies with Cesar Alvarez - Part


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And we're back for the final episode in this 3-part series on building Mean Reversion strategies with Cesar Alvarez from Alvarez Quant Trading.

In the 1st episode we discussed the goal of Mean Reversion trading, how to select a trading universe, a number of effective techniques to measuring Mean Reversion and how to combine indicators to identify better quality trades.

In the 2nd episode we discussed market classification, trade ranking, exits, order types, position sizing, risk control and much more.

In this 3rd and final episode, Cesar answers all your questions, covering a wide range of topics, including:

  • Mean Reversion in markets outside of Stocks,
  • Controlling risk during market sell-offs, gaps and being overweight in particular sectors,
  • Performance of Large caps vs Small caps,
  • Ranking Mean Reversion setups,
  • Shorting strategies,
  • Readjusting strategy parameters and measuring robustness,
  • Balancing Mean Reversion in a portfolio of other trading styles,
  • Tail risk, leverage, options, performance monitoring and so much more!

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.

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