Optex Bands

by | Jan 12, 2017

In this webinar we take a look at the revolutionary Optex Bands tools that are included in Optuma. This is one of the most powerful mean reversion techniques available. We explain how it is constructed and show some examples of how it is used.

2 Comments

  1. Dear,

    Thanks for the amazing video, I have 2 questions:

    1- the Optex trigger 300 and 300 trend we use it for longer term and with DMPA setup of 300 bars?

    2- what is the setup for the other side (short side trigger with a down trend)?

    Sincerely

    Fawaz Jarrar

    Reply
    • Mathew Verdouw, CMT, CFTe

      Hi Fawaz,

      Thanks for that.

      Re 1. The 300 is three standard deviations, while the 250 is 2.5 SDs. Like typical statistics, touches on the 300 don’t happen often but when they do they are significant. In our testing the 300 was better but there was not enough signals.

      Re 2. This is where the tool operates differently on different securities. Equities typically rise slowly and fall fast. It is those quick deviations from the average that we need to pick up a signal. This means that on equities we get very few valid sell signals by being overbought. Testing just did not give us enough of an edge. Commodities are slightly better as the shorts and the longs tend to balance out but there is still a tendency for an upward bias that reduces the sell signals. FX is good in both directions. Because of all of this, we use the tool more on the upside than the downside.

      Hope that helps

      Mathew.

      Reply

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