Mean Reversion Trading


AI algorithm gold, silver and E-Mini S&P reports with 90%-95% probability

The Mean Reversion Trading reports for gold, silver and the E-mini S&P are based on analysis by the Variable Changing Price Momentum Indicator (VC PMI). The VC PMI system was designed by Equity Management Academy CEO Patrick MontesDeOca for self-directed traders who want to use the reports to guide their trading, speeding up analysis of the markets and providing a clear, precise structure for trading.

The VC PMI creates a structure for self-directed traders to identify the supply and demand levels (two buy levels and two sell levels), and with the AI activated, it teaches you how to recognize the trigger points activated by the system. If executed correctly, the VC PMI's structure allows you to capture the extreme implied volatility of the gold, silver and E-mini S&P markets, as well as other markets we analyze for our Equity Management Academy subscribers. By using the reversion to the mean embodied in the VC PMI’s artificial intelligence (AI) algorithm, you can, with 90% to 95% probability capture market movements as the market reverts to the mean.

What Marketplace Subscribers Receive

In the public area of Seeking Alpha, we offer intermittent reports on gold, silver, the E-mini S&P and other markets that we analyze using the VC PMI. On Marketplace we offer weekly reports with actionable entry/exit points to help you capitalize on the volatility of the markets. A subscription to Mean Reversion Trading includes:

  • weekly reports based on daily and weekly data using the VC PMI
  • reports for the gold, silver and E-mini S&P markets
  • each report contains precise entry, exit and stop points
  • reports are for day, swing or long-term trades
  • Early Bird Reports when a market warrants immediate attention

The reports are generated for each market by 7 pm (PT) the night before the start of a week's trading sessions (usually Sunday night). 

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We offer a free two-week trial, so try Mean Reversion Trading today. You've got nothing to lose, but the profits.

Using the VC PMI

The reports based on the VC PMI automated AI trading program are designed to do everything for you. The proprietary model incorporates moving averages, pivot points, Elliott wave, Fibonacci, Vedic and Western mathematical principles to monitor cycles and identify volatility, momentum and patterns.

The VC PMI indicators are a subset of support and resistance levels. This special form of projected support (demand) and resistance (supply) form the basic methodology used by the VC Daily PMI proprietary algorithm.

The basis for defining expectations for tomorrow’s trading is the historical support and resistance levels. Using these prices as an input for our proprietary algorithm produces the most powerful anticipated buy or sell levels for tomorrow’s trading session called the VC Daily PMI. Our system can then extrapolate how far the market is likely to move up or down from the VC PMI levels in the preceding session.

Example of a report: Gold, silver, crude and S&P E-mini (Crude and other market analyses is available from the Equity Management Academy).

https://lh4.googleusercontent.com/P6JRvnX5U6xyi6AKGTkwVz9RIFPIOv_Qt3zke8w-tPLgILUxHQnrnpBQAvDxlcMY6rWPMU_jw9_8JLAxbW6wzl2OG97sen0JXcjcgQOenij5ffxkmrqrDwYyVaL_WCTmv8Y2Ru5F

The first projected anticipated level of resistance (supply) above the VC PMI levels is called sell 1 (S2). The next higher calculated resistance level is sell 2 (S2). Similarly, the first level of projected support (demand) is buy 1 (B1) under the VC PMI level. The next lower level of support is buy 2 (B2).

During the upcoming trading session, unless the price action is influenced by unprecedented outside forces such as momentous economic reports or news, our model will revert to its mean between these calculated points.

In general, if today’s price action starts above the VC PMI level it will tend to stay above the VC PMI level (also called the daily pivot point, average price or mean of the day’s activity).


https://lh6.googleusercontent.com/s7EHWvncM19GRhIjPyM8sWdkarWMjhk0Yu_ZRHabF-BGzyVYWdpx5I3-zMe2gF4nRqzmm0QsCIcg3qTYyMCPuq54GZ86d2XJnSrYVkvAMaNKbA1gQxIKZ_x2QmbMOLdjmXOdtcej

Under such circumstances, resistance will be met at price level S1. Should S1 be broken, further resistance will be expected at S2. The story is reversed if the price action is below the VC PMI level. Support will be met at price level B1. Should B1 be broken, further support will be expected at B2. If after starting the day above the VC PMI the price crosses through the VC PMI price and closes above that price, the VC PMI then will act as a support area.

The VC PMI points and levels are support and resistance levels and behave exactly like any historical supply and demand level. Therefore, the VC PMI levels are useful as an index tool for both day trading and for selecting and exercising entries and exits for longer term traders.

Who's Behind the Reports?

I am the Director of Research for the Equity Management Academy. I have a doctorate from the University of Southern California with a focus on international political economy and was a broker and analyst at the largest independent brokerage firm in the western United States for five years. I have researched, written and edited financial articles for more than a decade and have authored nine books, including research on decision making and the use of lessons from the past to make current decisions. For information on my books at the Kerrera House Press website.

I work closely with Patrick MontesDeOca, CEO of the Equity Management Academy. Patrick has more than 30 years of trading experience in a range of markets, and is the developer of the VC PMI. He worked as a trader in New York, and then moved to Los Angeles, where he worked as a broker and then developed the VC PMI. He has contributed hundreds of articles to financial sites, such as Seeking Alpha, Investor.com and others.

Try Mean Reversion Trading today, which includes a two-week trial period, and a year's worth of reports for the price of only 6 months.