ACEMAN

After a Down Month, Wait a Month to Buy an Asset Class

Y'all have to understand that "mean reversion" is a probability construct and Gaussian applications are not. But the real issue to which DLaw is on the trail of is this: "median" and "average" could be pure noise or just bad numbers that look good for analysis sake. The fact is the mean reversion construct merely approaches or in truth approximates a mean, it can 't really get there, i.e., to any real mean, and that was proven by Goedel's hypothesis. So what y'all have is something that approaches your "mean" but never really gets there. Moreover, a mean reversion cannot, because it is impossible, provide all the data that is necessary to carry out a quantum analysis. So to make this applicable to trading, y'all need to forget about mean reversion because y'all can't trade on it as it is not predictive in any way, shape or form. In fact, it probably gets in the way of trading intuitions and complex individual understanding. Reversion to the mean is a fiction and cannot be proven to be effective in making you a better and more successful trader. Probability theory should not be used as a predictive tool, cause it ain't!