Adventures in ML trading - Part 2

Preface In my previous post, I developed a simple mean-reversion strategy based on an oscillating signal calculated from a stock&rsquo;s distance to its 50-day simple moving average. However, the results revealed a key shortcoming: the algorithm struggled to account for momentum, leading to poorly timed exits during parabolic moves—either too early or too late. In this post, we’ll dive into…