Mean Reversion Strategy with 82% Win Rate
- Zohair Fa
- Oct 20, 2024
- 1 min read
Updated: Oct 22, 2024
This strategy is designed around the concept of the Internal Bar Strength (IBS) in trading, a widely regarded mean reversion indicator. By analyzing the position of the closing price relative to the high-low range, the IBS helps identify potential reversal points.
To enhance the accuracy of signals, I've incorporated my own momentum filters and a robust risk management system to capture only the highest probability setups. The strategy is optimized for daily timeframes and has demonstrated a consistently high win rate through extensive backtesting. It’s ideal for traders looking to capitalize on short-term mean reversion opportunities with strong risk controls.