The discipline to not backtest new strategies for two years just to avoid data mining bias is rare. Most traders would have already pivoted three times by now chasing whatever worked last month. That Dow 30 mean reversion loss is interesting thoug, feels like the whole market structure has shifted with concentration risk so high. When only a handful of stocks are driving everythng, traditional mean reversion setups probably don't work the same way.
The discipline to not backtest new strategies for two years just to avoid data mining bias is rare. Most traders would have already pivoted three times by now chasing whatever worked last month. That Dow 30 mean reversion loss is interesting thoug, feels like the whole market structure has shifted with concentration risk so high. When only a handful of stocks are driving everythng, traditional mean reversion setups probably don't work the same way.
Well said. If a few stocks drive the action, some of the rest or even most are in a random walk regime, neither mean reversion nor trend following.