“Reversion to the Mean (part 3)”

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Join us for our February meeting when SMT Vice-President John T. Nelson will discuss “Reversion to the Mean.” “Trend” and “Reversion to the Mean” are two popular styles of trading. In finance, “Reversion to the Mean” refers to the assumption that a stock’s price will, over time, tend to move to the average or “normal” price trend. Traders can take advantage of temporary divergences from the trend to trade the relative highs and lows or “trade around the position.” In tonight’s presentation, John Nelson introduces several examples of the “Reversion to the Mean” strategy on the Thinkorswim platform and the philosophy for building them.

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