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Strategies & Market Trends : The Final Frontier - Online Remote Trading
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To: TraderAlan who wrote (11673)5/31/2006 3:41:12 PM
From: Eric P   of 12617
 
One thing you can "see" on the tape: reversion to the mean strategies, sucking prices back to the middle after stretches in either direction. That's why the timing commentaries of typical TA heads these days are almost always wrong.

Seems clear to me VWAP and other strategies that have the effect of reverting prices to mean have led to the lower volatilities in recent years. That said, I have felt strongly that these things should make trend following systems more reliable, as the market will have a higher "signal to noise" ratio for finding 'real' market moves. That said, I've found that a good intraday trend following system is easier to imagine than it is to actually find (for me, anyway).

-Eric
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