Multi-currency mean reversion is one of the safest entry strategies available to forex traders. It has a simple definition, can be traded visually and it works very well, provided you are trading correlated currency pairs.
Multi-currency mean reversion, also known as statistical arbitrage, is one of the safest entry strategies available to forex traders. It has a simple definition, can be traded visually by anyone and it works very well, provided you are trading correlated currency pairs. In this post, I’ll share how I use two simple indicators to find profitable mean reversion trades, at almost no risk and without going into the mathematics of it.
Continue reading “Easy correlation and mean reversion strategy”
Learn how to pick forex pairs to trade reversals using a multi-instrument technical valuation model.
One of the most difficult problems we traders face is choosing what symbols to trade at any given time, because not all symbols offer the same probability of price movement measured against their intrinsic volatility. As traders, our available funds and free margin are limited, which means that we need to allocate them properly if we are to thrive.
Continue reading “How to find forex pairs likely to make strong reversals”