Hi Sharks This is purely an execution strategy and will not help...

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    Hi Sharks

    This is purely an execution strategy and will not help you find turning points. (It needs to be coupled with compatable mean reversion indicators to tell you when to switch sides.
    A simple approach to netting is to calculate the 'minimum move' required to put you in profit on each trade that incorporates trading cost & a buffer for losses.
    If you then calculate the high probablistic move for the product & wavelength you are targeting (say 90th percentile) then sell targets should fall between the minimum & high probablistic move per rotation.
    Probablistic moves should be seperated into long and shortside as in an uptrend the shortside move will be shorter (and the opposite is true in a downtrend). If the shorter of the long/short probablistic move is shorter then your 'minimum move' then for mine, the product is not suitable for mean reversion trading in the current point in the cycle.

    Sorry to hear you didn't find it useful & hope your testing the waters with small size.
 
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