I have been using trend trading strategies, but I want to explore the addition of a media reversion strategy as a complement to reduce Drawdowns.Has anyone tried this combination?What results have they had?
I have been using trend trading strategies, but I want to explore the addition of a media reversion strategy as a complement to reduce Drawdowns.Has anyone tried this combination?What results have they had?
The combination works very well, especially in side markets.Just be sure to adjust the parameters of each strategy so that you do not conflict during mixed signals.
Yes, mixing trends with average reversal can soften falls and stay operating in side markets, which is a great advantage.
It is also important to define the activation criteria for each strategy.You will not want both strategies to be activated at the same time and end up canceling each other.