Hidden Markov Model: What Market Regime Labels Mean

You open a backtest and one line stops you. The strategy, it reports, only performs in the low-volatility regime. Somewhere a stretch of the chart has been tagged calm and…

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Variance Ratio: Is Your Market Trending or Reverting?

You've got a chart in front of you and a decision to make before you touch a single indicator: reach for a breakout tool that assumes the move keeps running,…

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Mean Reversion Trading: When Fading Extremes Pays Off

A stock gaps down six percent on no fresh news, tags the lower Bollinger Band, and its 14-period RSI prints 22. Two experienced traders pull up the same chart. One…

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