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Reversion strategies profit from mean‑reverting price moves after extreme moves
  • Reversion bets that a price that has moved sharply away from a perceived equilibrium will bounce back.
  • It is useful in markets where price overshoots are common (e.g., after block‑trade liquidation or news spikes).
  • The strategy often incorporates volume and volatility filters to avoid chasing momentum.
  • Nang mentions that statistical arbitrage is essentially a reversion play on unexplained price spikes.
Rishi NangTitans Of Tomorrow00:23:35

Supporting quotes

If you see a big price move that doesn't seem explained by a bunch of other factors, just bet that that price move will reverse. Rishi Nang
You can bet they reverse. That's reversion. Rishi Nang

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Alpha Generation: Trend, Reversion & Technical Sentiment

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