Mean Reversion
Buy the oversold, fade the overbought
What it is
Bet that a price stretched too far from its average snaps back — buying quality that got oversold, or fading junk that ran on nothing.
When it works
RSI extremes (oversold quality with an intact thesis, or overbought low-quality names), far from the moving average, no broken story.
Why the setup pays
Price Action = Mean Reversion flips the logic from momentum: you want stretch, not continuation. A short Swing horizon matters — reversion plays decay if the snap-back doesn't come quickly.
The market it wants
Recovery / Slowdown. Longs work in Recovery and late-Contraction (washed-out quality bounces); fades suit Slowdown.
What goes wrong
"Oversold can get more oversold" — catching a falling knife with a genuinely broken thesis.
Where it sits in the book
Mean Reversion belongs to Linear Risk Premia & Style Factors, the group whose edge comes from mean or trend of the distribution. That group looks for sustained trend extensions, or clear overextensions for mean-reversion, and its risk profile is dynamic / path-dependent directional.
Run this on the live market
This is the thesis the engine scans with. It reads the whole universe, scores what matches, and prices the structures against fair value.
oversold profitable large caps with RSI under 30 and no broken thesis, swing long, equity only
No account needed to run it. The free trial runs on the same live data a paid account gets.
Educational material, not investment advice. Nothing on this page is a recommendation to trade any security or structure. Options trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future returns.