The DVTS is for trending up moves. The QE BTS sub system
is a reversion to mean type of system. Those are completely
different things. Trend systems vs reversion to mean systems. Trend
type system should be obvious. An example of a reversion to mean
type system would over the last 30 years when the SPX was up 10
days in a row without a pullback that condition occurred only 15
times and 95% resulted in a winning short trade. So you play the
statistical odds - but it's a counter trend short because the
market is up. Also when you have crazy enough times like now the
historical statistics can get blown out of the water. A trend
system -the market is going up, you buy into it. Anyway both
type systems have their benefits and draw backs. Trend
systems on average are lower winning % , 60 - 70% odds. Reversion
to mean tend to be higher odd trades many tines 90% winning or
better. Trend systems you can have tight stops, reversion to mean
systems stops are not as easy because of their nature
I can't go into any more details than that intra day here
managing trades
The DVTS is for trending
Can you help us understand a little bit more about ...
Posted by matt on 9th of Apr 2020 at 01:30 pm
The DVTS is for trending up moves. The QE BTS sub system is a reversion to mean type of system. Those are completely different things. Trend systems vs reversion to mean systems. Trend type system should be obvious. An example of a reversion to mean type system would over the last 30 years when the SPX was up 10 days in a row without a pullback that condition occurred only 15 times and 95% resulted in a winning short trade. So you play the statistical odds - but it's a counter trend short because the market is up. Also when you have crazy enough times like now the historical statistics can get blown out of the water. A trend system -the market is going up, you buy into it. Anyway both type systems have their benefits and draw backs. Trend systems on average are lower winning % , 60 - 70% odds. Reversion to mean tend to be higher odd trades many tines 90% winning or better. Trend systems you can have tight stops, reversion to mean systems stops are not as easy because of their nature
I can't go into any more details than that intra day here managing trades
On going education! Thank you!
Posted by steverobin on 9th of Apr 2020 at 01:55 pm
On going education! Thank you!