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Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean

Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean
Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean
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In this article, I will systematically investigate the tendency of different Forex pairs to either trend or revert to the mean. I will do so by backtesting a simple trend-following strategy. (Code available on Github. See the end of this article.)

β€œThe trend is your friend.”, is a very well known trading adage. Another thing you read a lot in trading books, blogs, etc. is that the market only trends 20, 30, 40, xx% of the time.

I was wondering how these ideas relate to the Forex markets. Continue reading “Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean”