Feb 9, 2024
Hi Richqw, thanks for the comment!
The bot uses a mean reversion based on the assumption that prices will tend to revert to a long-term average or mean over time. If an asset is currently trading away from its mean, the strategy predicts that it will eventually return to that mean, providing a trading opportunity.
To further test it, we'd have to test over different periods, out of sample testing, and Monte Carlo testing.
The good news is that anyone can create a bot and test themselves.