Mean Reversion System vs Trend Following System

Quick comparison to help you distinguish these two crypto terms.

Mean Reversion System
intermediate
strategy

A rule-based trading system that identifies when an asset's price has moved abnormally far from its statistical average and enters positions expecting that price to return toward normal levels.

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Trend Following System
intermediate
strategy

A rule-based trading system that identifies an established directional price trend and enters positions in that direction, holding until objective exit conditions signal trend exhaustion or reversal.

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