GeorgeOnTV

Mean Reversion trades on AAVE

BINANCE:AAVEUSDT   AAVE / TetherUS
Mean Reversion is the simple strategy of price moving 'too' far away from its averages and potentially requiring a reversion before either continuation or ideally total reversal

Aave has been offering some beautiful mean reversion entries for us recently even to the point of essentially two sigma. Both the buyzone meanmove right to the sellzone meanmove. That is not usually the case to capture both in consecutive order but of course happy to see it happening to aave and a few others we are routing.

The strategy is based more so around the reversion to mean(s) rather than the total reversal

Is nice when able to capture the total reversal one peak to the next but the strategy is focused primarily on alerting once candle is 'too' far away from mean and then riding it to touching mean (even if just for a moment). These are usually short held positions rather than multi day long swing trades.

Good to focus on largecap even more so largecap 'monopolies'

Increasing interest in the monopolies in the crypto space as everything has taken a hit due to liquidity consolidating into either US yields or US dollar or even within the crypto space consolidating into ethereum away from nameless countless junk tokens.

These alerts are currently set up for just largecap as the volatility in smallcap can create a ton of risk to this strategy as volume is needed as confirmation of previous prices to revert to. I do also think monopolies will lead + be safer in macro retraces in bull market or macro reversion to mean even if just to tap 9ema on weekly before continuing bull moves.



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