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(binned per thread starter’s request) reversionX: A Rule-Based

  • #101
  • May 27, 2025 5:59pm May 27, 2025 5:59pm
One hell of a trade on the asian session

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There is no holy grail in trading – only discipline, consistency and edge.
  • #102
  • May 27, 2025 8:03pm May 27, 2025 8:03pm
Quoting rishee
{quote} I'm not exactly sure what you're referring to, but I don't see any signals between 2 and 3. If you're seeing something different on your end, please share the screenshots, and I'd be more than happy to take a look.
Hi, thanks. I assumed there were two buy oppurtunities between 2 and 3. Maybe im wrong, thanks!

edit: i see also bullish divergence on the macd and BBsqueeze oscillators which could indicate a buy
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  • #103
  • May 28, 2025 3:22am May 28, 2025 3:22am
Decided to set take profit at 1:1 as I couldn't monitor the trades and both hit target.
AUDUSD eventually reached 1:2 but would have hit breakeven before that and GBPCHF was a late entry but luckily made it to 1:1.
Also two losses on EURCHF and EURGBP.
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  • #104
  • May 28, 2025 5:08am May 28, 2025 5:08am
Quoting TheJube
{quote} Hi, thanks. I assumed there were two buy oppurtunities between 2 and 3. Maybe im wrong, thanks! edit: i see also bullish divergence on the macd and BBsqueeze oscillators which could indicate a buy {image}
We’ve laid out a clear set of rules for the initial reversionX signal. If you’d like to follow the strategy as designed, you can refer to the original post. That said, if you're comfortable making tweaks, feel free to adapt it to your style.
There is no holy grail in trading – only discipline, consistency and edge.
  • #105
  • May 28, 2025 5:11am May 28, 2025 5:11am
Quoting Eskyflyer
Decided to set take profit at 1:1 as I couldn't monitor the trades and both hit target. AUDUSD eventually reached 1:2 but would have hit breakeven before that and GBPCHF was a late entry but luckily made it to 1:1. Also two losses on EURCHF and EURGBP. {image} {image} {image} {image}
Great — make sure to journal every trade. Once you’ve logged 50 trades, we’ll have enough data to analyze performance, spot anomalies, and refine the strategy together that better suits your style.
There is no holy grail in trading – only discipline, consistency and edge.
  • #106
  • May 28, 2025 5:49am May 28, 2025 5:49am
Quoting rishee
{quote} Great — make sure to journal every trade. Once you’ve logged 50 trades, we’ll have enough data to analyze performance, spot anomalies, and refine the strategy together that better suits your style.
Thank you very much for the suggestion and will do that.
  • #107
  • May 28, 2025 6:09am May 28, 2025 6:09am
Killer trade - Classic setup

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There is no holy grail in trading – only discipline, consistency and edge.
  • #108
  • May 28, 2025 7:56am May 28, 2025 7:56am
Not the ideal setup — the stop loss didn’t follow standard rules, and I missed the chance to move it to breakeven after reaching 1R. Eventually, it hit the stop. In hindsight, I should’ve either skipped the trade or secured it. Didn’t do either — definitely a learning moment.

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There is no holy grail in trading – only discipline, consistency and edge.
  • #109
  • May 28, 2025 8:11am May 28, 2025 8:11am
Ending the day with break even on Oil

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There is no holy grail in trading – only discipline, consistency and edge.
  • #110
  • May 28, 2025 10:48pm May 28, 2025 10:48pm
Quoting rishee
Ending the day with break even on Oil {image}
Hi Mate,

Thanks a lot for posting this system. It is well documented and will definitely test it out. May i know how do you monitor potential entries ? Do you use some kind of dashboard or just monitor the chart every 5 or 15 min for entries ?
  • #111
  • May 28, 2025 11:22pm May 28, 2025 11:22pm
https://www.youtube.com/watch?v=gOMm1o_9Dcc

Kathy Lien, a Managing Director of FX Strategy at BK Asset Management, has discussed mean reversion strategies, particularly in relation to bank trading. She's highlighted how bank traders use mean reversion, identifying market anomalies and trading the adjustment back to the mean. Lien's strategy involves using 15-minute charts and Bollinger Bands to identify entry and exit points.

Here's a more detailed look at how Kathy Lien and others discuss mean reversion strategies:
What is Mean Reversion?
Mean reversion is a trading strategy based on the idea that asset prices tend to revert to their average (mean) value after periods of overvaluation or undervaluation.
Kathy Lien's Approach:

  1. Bank Trader Strategy:
    Kathy Lien's approach focuses on replicating the mean reversion strategies used by bank traders.
  2. 15-Minute Chart:
    She utilizes 15-minute charts to identify quick opportunities to trade mean reversion.
  3. Bollinger Bands:
    Bollinger Bands are a technical indicator that helps identify price volatility and potential overbought or oversold conditions, which are signals for mean reversion trades.
  4. Entry and Exit:
    She emphasizes the importance of clear entry and exit points, using Bollinger Bands and other technical indicators to guide traders.
  5. Real-World Examples:
    Lien often uses real-world chart examples to illustrate how to identify high-probability setups for mean reversion trades.


Other Perspectives on Mean Reversion:

  1. Jim Simons:
    Jim Simons (founder of Renaissance Technologies) has referred to mean reversion strategies as "low-hanging fruit" in the equity markets due to their relative ease of implementation and understanding.
  2. Larry Connors:
    Larry Connors developed a mean reversion strategy that focuses on buying when prices drop, using indicators like ConnorsRSI to guide entry points.
  3. Quantitative Strategies:
    Quantitative strategies often employ mean reversion by using statistical analysis (like Z-scores) to identify price deviations from the mean.

Key Considerations for Mean Reversion:

  1. Drawdowns:
    Mean reversion strategies can have periods of drawdowns, where the price temporarily moves against the trend, so it's important to have a stop-loss strategy.
  2. Win Rate and Gains:
    Mean reversion strategies often have a high win rate but can be associated with small gains and occasional large losses.

Grit; Knowledge; Right Mindset; All you need to overcome. KIS!
  • #112
  • May 29, 2025 12:38am May 29, 2025 12:38am
Managed to take one trade yesterday and resulted in breakeven.
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  • #113
  • May 29, 2025 5:52am May 29, 2025 5:52am
Quoting Snirodha
{quote} Hi Mate, Thanks a lot for posting this system. It is well documented and will definitely test it out. May i know how do you monitor potential entries ? Do you use some kind of dashboard or just monitor the chart every 5 or 15 min for entries ?
Hey, thanks a lot! Glad you found the system well-documented
Here’s how I personally monitor entries:
I usually set alerts for 8–10 key instruments I actively watch — mainly Gold, NASDAQ, Oil, Natural Gas, Silver, EUR/USD, USD/JPY, and AUD/JPY (especially during the Asian session). All of these are on the 15-minute timeframe.
The alerts are configured to trigger when key setup conditions are met — specifically:

  1. Bollinger Band breakouts
  2. RSI thresholds
  3. Stoch RSI oversold/overbought

Once an alert fires, I manually check the chart to validate the setup by reviewing the MACD histogram flow and TTM Squeeze behavior. That’s when I decide if the setup meets the full reversionX criteria for entry.

There is no holy grail in trading – only discipline, consistency and edge.
  • #114
  • May 29, 2025 5:53am May 29, 2025 5:53am
Quoting GhosTraderGT
https://www.youtube.com/watch?v=gOMm1o_9Dcc Kathy Lien, a Managing Director of FX Strategy at BK Asset Management, has discussed mean reversion strategies, particularly in relation to bank trading. She's highlighted how bank traders use mean reversion, identifying market anomalies and trading the adjustment back to the mean. Lien's strategy involves using 15-minute charts and Bollinger Bands to identify entry and exit points. Here's a more detailed look at how Kathy Lien and others discuss mean reversion strategies: What is Mean Reversion?...
Thanks for the info...
There is no holy grail in trading – only discipline, consistency and edge.
  • #115
  • May 29, 2025 5:57am May 29, 2025 5:57am
Quoting Eskyflyer
Managed to take one trade yesterday and resulted in breakeven. {image}
I understand — the trade hit your take profit right after stopping you out. Like I mentioned, with enough screen time and practice observing how price behaves around the indicators we use, your trade management will improve significantly. In this case, both MACD and TTM Squeeze were showing clear signs of weakening bearish momentum. That was a good reason to stay in the trade instead of moving your stop to breakeven too early. Of course, since the trade worked out, it's easy to say this in hindsight — but the point is, with more experience and confidence, you'll naturally start holding trades longer when the setup remains valid.
There is no holy grail in trading – only discipline, consistency and edge.
  • #116
  • May 29, 2025 6:24am May 29, 2025 6:24am
Quoting rishee
{quote} I understand — the trade hit your take profit right after stopping you out. Like I mentioned, with enough screen time and practice observing how price behaves around the indicators we use, your trade management will improve significantly. In this case, both MACD and TTM Squeeze were showing clear signs of weakening bearish momentum. That was a good reason to stay in the trade instead of moving your stop to breakeven too early. Of course, since the trade worked out, it's easy to say this in hindsight — but the point is, with more experience...

Quick 5R trade — this is exactly the kind of setup I was referring to earlier. Even though the overall trend is still strongly bearish, the MACD is clearly losing momentum. That’s often a good time to secure profits. Could the move continue? Maybe — but given the shift in momentum, it's often smarter to take the win and exit cleanly.

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There is no holy grail in trading – only discipline, consistency and edge.
  • #117
  • May 29, 2025 6:30am May 29, 2025 6:30am
To be honest, I skipped this trade because the confirmation came after about 10 candles, and with New York about to open in 15 minutes, I decided to stay out.
That said, it ended up playing out beautifully.

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There is no holy grail in trading – only discipline, consistency and edge.
  • #118
  • Edited 8:56am May 29, 2025 8:45am | Edited 8:56am
Quoting rishee
{quote} I understand — the trade hit your take profit right after stopping you out. Like I mentioned, with enough screen time and practice observing how price behaves around the indicators we use, your trade management will improve significantly. In this case, both MACD and TTM Squeeze were showing clear signs of weakening bearish momentum. That was a good reason to stay in the trade instead of moving your stop to breakeven too early. Of course, since the trade worked out, it's easy to say this in hindsight — but the point is, with more experience...
Appreciate your suggestions
  • #119
  • May 29, 2025 8:49am May 29, 2025 8:49am
Quoting rishee
{quote} Quick 5R trade — this is exactly the kind of setup I was referring to earlier. Even though the overall trend is still strongly bearish, the MACD is clearly losing momentum. That’s often a good time to secure profits. Could the move continue? Maybe — but given the shift in momentum, it's often smarter to take the win and exit cleanly. {image}
Beautiful setup there. Today I couldn't find a good setup so I stayed out (it's a bit difficult taking trades at work )
  • #120
  • May 29, 2025 9:06am May 29, 2025 9:06am
Took a loss on gold

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There is no holy grail in trading – only discipline, consistency and edge.
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