+505% Yearly 81% winrate - Reliable Mean Reversion

[US-100, 5&#37; Risk](https://preview.redd.it/ajp029wthu6e1.png?width=1746&format=png&auto=webp&s=34a9301496e4ea0f6438f4e2a14c4c3714487e78) # Disclaimer > Check my previous post for more details! # Idea Since the US-100 is the most mean reversion instrument, we can take advantage of this characteristic and build around it the simplest strategy made on the average price. Idea is to enter at the moment when the price closed at the bottom of the bar range. However, we should realize that since we trade only Buy, we need a filter! # Strategy * **Instrument**: US100 (NQ) * **TF**: 1D (*The strategy does not work on time frames below)* * **Initial Capital:** 10k$ * **Risked Money**: 500$ * **Data Period**: 2012.01.19 - 2024.11.28 *The strategy buys only if there are no open trades. That is, there can be only 1 trade at a time.* *The strategy does not have a shortsell trades as instrument is often in the uptrend.* ***Inputs:*** 1. Fast - 5/**10**/15/20 2. Slow - 100/**200** **Buy Rules:**  1. Close < SMA(Fast) 2. Close < (0.2 \* (High - Low)) + Low 3. Close > SMA(Slow) **Close Rule**: Close > SMA(Fast) Since it is a [Mean Reversion](https://www.babypips.com/forexpedia/mean-reversion) strategy: **I do not recommend using the Stop Loss** as it increases the drawdown and reduces the profit. **I don’t recommend using Take Profit** as it reduces profits. # Results [US-100, Fixed 500$](https://preview.redd.it/n1qdrrjeju6e1.png?width=1786&format=png&auto=webp&s=b1898fb9950dca4a17b8ab7a070b427010ddc351) [US-100, 1&#37; of account](https://preview.redd.it/gz3wmtnrju6e1.png?width=1790&format=png&auto=webp&s=31bb7d582909e12b03c23ee6dde3a4bdf4120605) [Overview](https://preview.redd.it/28jwa20uju6e1.png?width=855&format=png&auto=webp&s=832c6370bc6ac26011a918451743b74471334001) [Trade analysis](https://preview.redd.it/fzr7yzavju6e1.png?width=1639&format=png&auto=webp&s=e22d25a311610b986108795d82b806aecd40b901) # Conclusions 1. This is the best Mean Reversion strategy so far. 2. The strategy works well even in forex (see credits). 3. Extremely unbelievably high winrate. The Sharpe ratio and Return DD Ratio remain normal. 4. Does not work well in a bear market, which is to be expected. Add other strategies to your portfolio that will work while this one is waiting >*Your task as a trader is to do more profit than an investor in the same time period on the same instrument.* *This can be done with a portfolio of strategies. With the right risk management it is possible to do it with a single strategy* # Credits * [Mean Reversion Trading Strategy for a High Win Rate](https://youtu.be/jAI6s1WuEus?si=2qxGNkRdkM4-YJja) * [Highly Reliable Mean Reversion Trading Strategy Backtested x Millions of Trades](https://youtu.be/gG_ONDRUPaQ?si=JQs2PCc4LjS74M1B)