Category Archives: Back Testing

Meanreversion and Breakout research on the EURUSD

Mean reversion and Breakout strategy combo
Mean reversion and Breakout strategy combo

Below is a snapshot of some trading research I have been doing.
By no means this is a trade-able strategy as is, but it does show two of the basic trading principles:

  • Mean reversion
    This is the principle that price tends to return to it’s mean after it has moved away from it.
  • Breakout
    This is the principle that price tends to break away once it has moved more then a certain percentage usually after a period of consolidation.

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