This is an alert about BPT Mechanical Systems:
Hello everyone and happy Friday, though not for the market.
anyway more mean reversion systems today, here they are
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MES futures mean reversion systems
CCI divergence 2nd entry, Trend/Pullback 3rd entry, QE BTS 3rd entry
SPY mean reversion systems
Trend/Pullback 2nd entry
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These mean reversion systems can be tough at times, I call them pucker trades/systems. that's the problem with mean reversion systems, they have high winning percentages, but when they scale into a strong pullback/correction and take heat, it's emotionally difficult at times to follow them. This tends to happen a couple times a year, it's never fun, but the systems generally play out.
as I've always said - mean reversion systems are NOT feel good systems, they buy when it feels horrible, and when they are earlier it feels more horrible LOL, it is what it is.
the KISS is easier honestly because you have your stop and risk defined
again if you need to limit risk or if you get emotional, you can limit the number of trades you do, you don't have to follow every sub system trade, you can set a maximum, if systems take trades on the same day you can always elect to treat that as one entry for example. For simplicity I just report what all the subs systems are doing and post their trades from entry to exit.
As far as options- yeah you can't complain too much if an option gets cut in half, they are much more volatile than the ETF's, if a SPY entry is down 7%, an option might be down 50%. Also back when I put out option trades I went out 2 months, and they were almost at the money, those do not degrade as much as if you pick an option that is out of the money and is far from the strike price
Matt
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