Mean Reversion Platform Workflow

This guide walks through the practical workflow for using QuanterLab's mean reversion tools, from scanning for candidates to building and testing strategies.

Step 1: Run the Scanner

Navigate to the Mean Reversion Scanner in the ribbon:

1. Select your market (US, EU, or Asia)
2. Choose the specific index (e.g., S&P 500, NASDAQ 100)
3. The scanner automatically processes all securities in the index

Results show securities ranked by composite score, with higher scores indicating stronger mean reversion characteristics.

Step 2: Review Scanner Results

For each candidate, the scanner displays:

• Composite Score - Overall mean reversion quality (0-100)
• Hurst Exponent - Regime classification
• RSI/BB Win Rates - Historical entry signal performance
• Half-Life - Expected reversion speed
• Current Signal - Whether entry criteria are met now

Step 3: Analyze Individual Securities

Click on any result to see detailed analysis:

• Price chart with indicator overlays
• Historical signal performance
• Component score breakdown
• Confirmation layer status

Step 4: Build a Strategy (Optional)

For more customization, use the Strategy Builder:

1. Select mean reversion as strategy type
2. Choose primary indicators (RSI, Bollinger Bands, etc.)
3. Add confirmation layers
4. Set entry/exit parameters

Step 5: Backtest

Before trading, test your strategy:

• Select historical period
• Review performance metrics (win rate, average gain/loss, etc.)
• Examine individual trades
• Adjust parameters if needed

Step 6: Paper Trade

Before committing real capital:

1. Set up paper trading for selected strategies
2. Monitor signal generation in real-time
3. Track simulated P&L
4. Compare live results to backtest expectations

Key Considerations

• Higher composite scores indicate higher-quality opportunities
• Consider position sizing based on conviction and volatility
• Monitor regime indicators for potential changes
• Don't override the regime filter—if Hurst shows trending, wait