“A simple mean reversion model can provide effective signals for option strategies even when trading costs are included,” she says. In a study released on Monday, Commerzbank shows that prior to the ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

Estimating mean-reversion speeds is an important step in calibrating interest rate models for the purposes of derivatives pricing. Relatively little has been written about it, especially for ...

Mean reversion posits that asset prices and market returns eventually gravitate toward their historical averages. This theory, applicable across diverse financial instruments, offers traders insights ...

Forbes contributors publish independent expert analyses and insights. I write about incisive investing advice. Financial planning is all about managing risk, and using mean reversion is a brilliant ...

This afternoon, I completed a series of refinements to both the trendline adjustment that was implemented two weeks ago, and the mean-reversion adjustment that was implemented earlier this week. I am ...