{"id":3710,"date":"2016-11-13T23:07:52","date_gmt":"2016-11-13T13:07:52","guid":{"rendered":"http:\/\/bettersystemtrader.com\/?p=3710"},"modified":"2023-09-01T14:26:11","modified_gmt":"2023-09-01T04:26:11","slug":"062-mean-reversion-strategies-pj-sutherland","status":"publish","type":"post","link":"https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/","title":{"rendered":"062 &#8211; Mean Reversion strategies with PJ Sutherland"},"content":{"rendered":"\n<div class=\"wp-block-fusebox-player-single\"><script data-type=\"track\" data-hash=\"Jogy5vKgEB\" data-track=\"61\" src=\"https:\/\/app.fusebox.fm\/embed\/player.js\"><\/script><\/div>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image alignright\"><img decoding=\"async\" width=\"200\" height=\"200\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/PJSutherland.jpg\" alt=\"\" class=\"wp-image-6584\" srcset=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/PJSutherland.jpg 200w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/PJSutherland-150x150.jpg 150w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/PJSutherland-100x100.jpg 100w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/PJSutherland-50x50.jpg 50w\" sizes=\"(max-width: 200px) 100vw, 200px\" \/><\/figure>\n\n\n\n<p>The performance profile of Mean Reversion is extremely desirable to a lot of traders.<\/p>\n\n\n\n<p>Mean reversion trading strategies can produce high win rates and a smooth equity curve, however there are risks, which can result in giving back a large portion of profits, or of your trading account, some times in a very short period of time.<\/p>\n\n\n\n<p>So what can you do to build mean reversion strategies that produce consistent profits while managing risk effectively?<\/p>\n\n\n\n<p>Todays guest, PJ Sutherland, is here to share the knowledge he has gained from years of research and trading mean reversion strategies, and as you\u2019re going to hear, he has some really interesting insights to share with us.<\/p>\n\n\n\n<p>PJ has extensive experience in the development and deployment of quantified trading systems and has been active in the market for the past decade.<\/p>\n\n\n\n<p>He is the founder and director of Alpha Investment Advisors, providing research to hedge funds and prop trading firms, and the founder of the website Quantlab.co.za for private traders.<\/p>\n\n\n\n<p>In our chat today, you will learn:<\/p>\n\n\n\n<ul>\n<li>The key drivers of short-term returns in&nbsp;mean reversion trading<\/li>\n\n\n\n<li>The impact of market environments on mean reversion strategies and how to detect and adjust strategies to varying market conditions<\/li>\n\n\n\n<li>Should you &#8216;Catch a falling knife&#8217; or wait for confirmation? How to determine which entry technique is best for you<\/li>\n\n\n\n<li>Building a portfolio of strategies using parameter ranges across the mean reversion curve<\/li>\n\n\n\n<li>Simple but powerful techniques to managing risk in mean reversion strategies<\/li>\n<\/ul>\n\n\n\n<div class='tm-tweet-clear'><\/div><div class='tm-click-to-tweet'><div class='tm-ctt-text'><a href='https:\/\/twitter.com\/share?text=Inefficiencies+that+exist+because+of+mean+reversion+are+driven+by+human+emotion+-+PJ+Sutherland&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank'>Inefficiencies that exist because of mean reversion are driven by human emotion &#8211; PJ Sutherland<\/a><\/div><a href='https:\/\/twitter.com\/share?text=Inefficiencies+that+exist+because+of+mean+reversion+are+driven+by+human+emotion+-+PJ+Sutherland&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank' class='tm-ctt-btn'>Click To Tweet<\/a><div class='tm-ctt-tip'><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Thanks to our sponsor &#8211; Alvarez Quant Trading<\/h3>\n\n\n\n<p>For beginner and intermediate courses on AmiBroker &amp; Backtesting, <a href=\"https:\/\/bettersystemtrader.com\/alvarezquanttrading_courses\" target=\"_blank\" rel=\"noopener\">check out Alvarez Quant Trading today.<\/a><\/p>\n\n\n\n<p><strong>Get a huge 30% discount until November 30, 2016!<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/bettersystemtrader.com\/alvarezquanttrading_courses\" target=\"_blank\" rel=\"noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"689\" height=\"103\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/04\/AlvarezQuantTradingCourses.png\" alt=\"AlvarezQuantTradingCourses\" class=\"wp-image-2902\" srcset=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/04\/AlvarezQuantTradingCourses.png 689w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/04\/AlvarezQuantTradingCourses-300x45.png 300w\" sizes=\"(max-width: 689px) 100vw, 689px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Resources mentioned in this episode<\/h3>\n\n\n\n<ul>\n<li>PJ&nbsp;can&nbsp;be contacted at&nbsp;quantlab.co.za and&nbsp;tradingstocks.co.za<\/li>\n\n\n\n<li>Books mentioned in the show:<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><a href=\"https:\/\/www.amazon.com\/gp\/product\/0134137043\/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&amp;tag=bst08-20&amp;camp=1789&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=0134137043&amp;linkId=d74c49eacf434c510827d37cc37b7b88\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/TechnicalAnalysis.png\" width=\"262\" height=\"339\" class=\"wp-image-3732 size-full aligncenter\" srcset=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/TechnicalAnalysis.png 262w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/TechnicalAnalysis-232x300.png 232w\" sizes=\"(max-width: 262px) 100vw, 262px\" \/><\/a><\/td><td><a href=\"https:\/\/www.amazon.com\/gp\/product\/1476757860\/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&amp;tag=bst08-20&amp;camp=1789&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=1476757860&amp;linkId=48a1f82a8bfc778a30b6234b03ae1a62\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/MoneyMaster.png\" width=\"233\" height=\"346\" class=\"aligncenter wp-image-3734 size-full\" srcset=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/MoneyMaster.png 233w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/MoneyMaster-202x300.png 202w\" sizes=\"(max-width: 233px) 100vw, 233px\" \/><\/a><\/td><td><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2015\/07\/WayOfTheTurtle.png\" width=\"237\" height=\"346\" class=\"aligncenter wp-image-2483 size-full\" title=\"https:\/\/www.amazon.com\/gp\/product\/007148664X\/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&amp;tag=bst08-20&amp;camp=1789&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=007148664X&amp;linkId=7a690bcbc1d7fcbda841987300291c46\" srcset=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2015\/07\/WayOfTheTurtle.png 237w, https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2015\/07\/WayOfTheTurtle-205x300.png 205w\" sizes=\"(max-width: 237px) 100vw, 237px\" \/><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Share a quote with your friends<\/h3>\n\n\n\n<div class='tm-tweet-clear'><\/div><div class='tm-click-to-tweet'><div class='tm-ctt-text'><a href='https:\/\/twitter.com\/share?text=It%E2%80%99s+the+magnitude+of+the+move+measured+by+rate+of+change+that+appears+to+be+the+most+effective&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank'>It\u2019s the magnitude of the move measured by rate of change that appears to be the most effective<\/a><\/div><a href='https:\/\/twitter.com\/share?text=It%E2%80%99s+the+magnitude+of+the+move+measured+by+rate+of+change+that+appears+to+be+the+most+effective&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank' class='tm-ctt-btn'>Click To Tweet<\/a><div class='tm-ctt-tip'><\/div><\/div>\n\n\n\n<div class='tm-tweet-clear'><\/div><div class='tm-click-to-tweet'><div class='tm-ctt-text'><a href='https:\/\/twitter.com\/share?text=Controlling+returns+never+works+for+anyone.+Those+look+after+themselves+if+we+focus+on+risk&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank'>Controlling returns never works for anyone. Those look after themselves if we focus on risk<\/a><\/div><a href='https:\/\/twitter.com\/share?text=Controlling+returns+never+works+for+anyone.+Those+look+after+themselves+if+we+focus+on+risk&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank' class='tm-ctt-btn'>Click To Tweet<\/a><div class='tm-ctt-tip'><\/div><\/div><\/span><\/p>\n\n\n\n<p><span><div class='tm-tweet-clear'><\/div><div class='tm-click-to-tweet'><div class='tm-ctt-text'><a href='https:\/\/twitter.com\/share?text=Once+I+started+focusing+on+the+magnitude+of+price+change%2C+that%E2%80%99s+really+where+I+started+to+see+phenomenal+results&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank'>Once I started focusing on the magnitude of price change, that\u2019s really where I started to see phenomenal results<\/a><\/div><a href='https:\/\/twitter.com\/share?text=Once+I+started+focusing+on+the+magnitude+of+price+change%2C+that%E2%80%99s+really+where+I+started+to+see+phenomenal+results&#038;via=bettersystrader&#038;related=bettersystrader&#038;url=https:\/\/bettersystemtrader.com\/062-mean-reversion-strategies-pj-sutherland\/' target='_blank' class='tm-ctt-btn'>Click To Tweet<\/a><div class='tm-ctt-tip'><\/div><\/div><\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Got A Question, Topic or Guest you want to see on the Podcast?<\/strong><\/h3>\n\n\n\n<p><span>Do you have a specific question, topic or guest you&#8217;d like to see on a future&nbsp;podcast episode?<\/span><\/p>\n\n\n\n<p><a href=\"https:\/\/bettersystemtrader.com\/podcast-suggestions\" target=\"_blank\" rel=\"noopener\"><span>Click here<\/span><\/a><span>&nbsp;and submit your suggestion for a chance to have it featured on an&nbsp;upcoming podcast&nbsp;episode.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Get the Transcript<\/strong><\/h3>\n\n\n\n<div class=\"ml-embedded\" data-form=\"XBbEdw\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Subscribe to Better System Trader&nbsp;and never miss another episode!<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><a href=\"https:\/\/itunes.apple.com\/au\/podcast\/better-system-trader\/id985870258\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2016\/11\/subscribe-with-itunes-button.jpg\" alt=\"subscribe-with-itunes-button\" width=\"200\" height=\"68\" class=\"aligncenter wp-image-3718 size-full\"><\/a><\/td><td><a href=\"http:\/\/www.stitcher.com\/s?fid=64542&amp;refid=stpr\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2015\/07\/stitcher.png\" alt=\"stitcher\" width=\"260\" height=\"53\" class=\"aligncenter wp-image-1208 size-full\"><\/a><\/td><td><a href=\"https:\/\/soundcloud.com\/better-system-trader\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2015\/07\/soundcloud.png\" alt=\"soundcloud\" width=\"260\" height=\"53\" class=\"aligncenter wp-image-1207 size-full\"><\/a><\/td><td><a href=\"http:\/\/subscribeonandroid.com\/bettersystemtrader.libsyn.com\/rss\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bettersystemtrader.com\/wp-content\/uploads\/2015\/07\/android.png\" alt=\"android\" width=\"260\" height=\"53\" class=\"aligncenter wp-image-1204 size-full\"><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Please support the podcast by giving an honest Rating\/Review for the show on&nbsp;<a href=\"https:\/\/itunes.apple.com\/au\/podcast\/better-system-trader\/id985870258\" target=\"_blank\" rel=\"noopener\">iTunes!<\/a><\/strong><\/p>\n\n\n\n<p><script><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The performance profile of Mean Reversion is extremely desirable to a lot of traders. Mean reversion trading strategies can produce high win rates and a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[211,43,309,56,18],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/3710"}],"collection":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/comments?post=3710"}],"version-history":[{"count":5,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/3710\/revisions"}],"predecessor-version":[{"id":10725,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/posts\/3710\/revisions\/10725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/media\/9789"}],"wp:attachment":[{"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/media?parent=3710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/categories?post=3710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bettersystemtrader.com\/wp-json\/wp\/v2\/tags?post=3710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}