Indices · Building an index strategy · lesson 5 of 9 · 7 min read · David Alexander
Mean reversion and trend are regimes, not truths
regime
A period during which a market's character is consistent - trending or mean-reverting, calm or volatile. Index behaviour changes between regimes, so a rule measured in one can be measured as worthless in another without anything being wrong with the measurement.
This lesson is part of the advanced modules.
Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.