Below you will find pages that utilize the taxonomy term “Mean Reversion”
Lately I’ve been think about becoming more active in trading again. I was reviewing some strategies and decided to recreate a mean reversion trading process in RapidMiner. I found a mean reversion trading stategy that uses Python here and just recreated it in RapidMiner.
The Process The process is quite simple. You do the following:
Load in stock quote data via CSV; Calculate daily returns; Calculate a 20 day moving average; Calculate a rolling 90 day standard deviation; Generate Trading Criteria per the article; Wrap it all together and look at the Buy vs Hold and Buy Signals.