Mean Reversion
The tendency of a price stretched far from its recent average to snap back toward it. Mean-reversion strategies buy weakness and sell strength — the mirror image of momentum. They typically win often in small amounts and lose occasionally in large ones when a 'stretched' price keeps stretching, which is why sizing and regime filters matter as much as the entry signal.
See it in action: RSI(14) Mean Reversion →
Backtested on 59 ETFs over 5.5 years — real engine results, buy-and-hold comparison on every page.
Related terms
MomentumThe empirical tendency of assets that have recently performed well to …OversoldA condition where a price has fallen hard and fast enough that an osci…RSI (Relative Strength Index)A momentum oscillator that scores the speed of recent price changes on…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.