Learn How to Trade Mean Reversion | How to Do Futures
Mar 31, 2021
By Frank Kaberna
You can compute a mean and standard deviation for any market, but how do you know if it reverts to that mean? Learn the whole process from computing the mean and standard deviation to assigning probabilities and choosing a market in our seminar on Mean Reversion, part of our How to Do Futures video series. Frank presents the strategy behind trading mean reversion with everything from stocks and bonds to currencies and commodities using statistics.
0:00 How to Do Futures
1:05 What is Mean Reversion?
2:25 Computing the Mean
3:50 Mean Reversion Example
9:00 Trading Mean Reversion Example
10:10 What is Standard Deviation?
10:35 Computing the Standard Deviation
11:50 Standard Deviation Example
13:30 Trading Standard Deviation Example
14:50 Assigning Probabilities
17:25 Choosing Your Market
22:05 Contrarian Strategies
22:50 Trend Follower Strategies
24:20 Trade Management
26:20 Advanced Stats for Fast Ideas
28:25 Using the Smalls
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The Small Exchange is making markets more accessible to more people with products that mix the efficiency of futures with the simplicity of stocks. The Smalls offer easily adoptable solutions to risk management and speculative needs of the modern trader in markets ranging from stocks and bonds to currencies and commodities.
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