Method4 min read
What mean reversion actually means
"It fell a lot, so it should bounce" is not mean reversion — it is hope with a chart attached. The real claim is about stationarity, and it is testable.
Tag
#statistics
2 posts tagged statistics.
Method4 min read
Building a z-score screen that isn't just a bad-news detector
A naive oversold screen returns the week's worst headlines. Four filters turn it into a list of stretched prices — with the code and the reasoning for each.