Tag: reversion to the mean

Profitable ETF Trading Strategies: Reversion to the Mean Trading Style

One of the time tested principles of market dynamics is the principle of the Reversion to the Mean. Over the long run, performance, volatility, price, relative strength: all of these measures mathematically require that periods of out-performance shall return to the mean.  Naturally, this is not prediction, only an appreciation of how the math is performed. […]

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