Public Publication Content
Myth or reality - mean reversion versus trend followingBy: Ned Davis |
Trend-following indicators cut losses short and let profits run. Because of this, the trend component gets double weight in Fab Five Model. Mean reversion indicators can be correct much of the time, but perform worse, by cutting profits short and letting losses run.Ned Davis Research | Ned's Insights | Institutional Hotline | 3X Weekly
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