CryptoHacker Noonabout 5 hours ago
Mean Reversion vs. Trend Following Explained
4 min read
Two traders can watch the same Bitcoin chart and take opposite trades based on trend following or mean reversion. Trend following bets price keeps moving; mean reversion bets price snaps back. The asset switches regimes, so a single strategy is always wrong for part of the year. Professional funds run both strategies to smooth drawdowns.
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