Short term reversion to the mean

What do you think about this?
Supertrend to show the trend direction
ADX to show the lack of a trend
Two period RSI for trade entry
Bollinger bands with 1 SD
The trades go like this;
Only trade in the direction of the supertrend
Only trade when candle has closed opposite side of the trend in the bollinger bands
Only trade when the ADX is showing a lack of trend
When the two period RSI closes above 80 for sell or twenty for a buy enter the trade
Use the ATR with a stop loss at 1.5 times ATR
Exit the trade when the RSI crosses into the opposite extreme

Lots of indicators. Surely a reversion to the mean is trading a pullback, so you’ll be going against super trend. If you wait for super trend to change, you’ll be entering late and if it’s a true trend you’ll be losing lots and big. Surely it’s better to wait for touches of the mean and go in the trend direction when it turns back

Its possible you could answer your own question, preferably using a demo account.

Plus the constant question - “Can I manage to run this strategy without getting confused?”

You might want to prioritise gauging the win rate, how many trades are possible per month per pair, the average profit v’s the 1.5ATR SL loss and suchlike.

1 Like

it is one answer, test it.

i think it is a good one
but you can try it on demo account or with small amount and after that you can send us the details and results
and i think when you have a system others can not say it is good or not market is the judger here