https://thealgobench.com/approaches/mean-reversion/Recent content in Mean reversion on The Algo BenchHugoen-INFri, 09 Oct 2026 00:00:00 +0000https://thealgobench.com/strategies/last-years-losers/Fri, 09 Oct 2026 00:00:00 +0000https://thealgobench.com/strategies/last-years-losers/<h2 id="the-idea">The idea</h2> <p>Buy what has fallen the most and wait for it to bounce back. It&rsquo;s one of the most natural instincts in investing, and it has a respectable academic history: a famous 1985 study found that US stocks with the worst returns over the past three to five years went on to beat the market. Prices overshoot, the argument goes, so the most hated stocks become too cheap.</p>https://thealgobench.com/strategies/double-seven/Wed, 07 Oct 2026 00:00:00 +0000https://thealgobench.com/strategies/double-seven/<h2 id="the-idea">The idea</h2> <p>Larry Connors&rsquo; Double Seven is one of the best-known short-term mean-reversion rules. In a market that is trending up, buy when it closes at a fresh 7-day low, and sell when it closes at a fresh 7-day high. The idea is that short pullbacks inside a long-term uptrend tend to snap back. The rule was popularised on US index ETFs. We wanted to see whether it carries over to NIFTY.</p>