remember mean reversion systems do not have stops on initial
trades
now....you could theoretically use a stop higher than the
historical max draw down, but that doesn't mean you are not in a
trade that exceeds the previous max historical DD by a tiny bit
where you get stopped out and the trade would have worked out
anyway
the max historical DD on the SPY exhaustion short 2 is -1.1%,
that's pretty darn low, could be easily hit if you use that as a
stop, but again that's up to you.
there are 2 exhaustion shorts, exhaustion short 1 and 2, the
version 1 did not trigger
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Matt, just checking what is
Posted by vasiboy on 18th of Jul 2025 at 02:53 am
Matt, just checking what is the stop on this MES short that's in play? Does it scale more entries if this keeps ramping up?
remember mean reversion systems do
Posted by matt on 18th of Jul 2025 at 09:18 am
remember mean reversion systems do not have stops on initial trades
now....you could theoretically use a stop higher than the historical max draw down, but that doesn't mean you are not in a trade that exceeds the previous max historical DD by a tiny bit where you get stopped out and the trade would have worked out anyway
the max historical DD on the SPY exhaustion short 2 is -1.1%, that's pretty darn low, could be easily hit if you use that as a stop, but again that's up to you.
there are 2 exhaustion shorts, exhaustion short 1 and 2, the version 1 did not trigger