Decoded Intelligence Signal
Half-Life (Mean Reversion)
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
The estimated time for a mean-reverting spread or price deviation to return halfway to its historical mean; derived from the OU process parameters; used to determine appropriate holding periods for mean reversion trades and select the correct lookback window.
Analysis Breakdown
The estimated time for a mean-reverting spread or price deviation to return halfway to its historical mean; derived from the OU process parameters; used to determine appropriate holding periods for mean reversion trades and select the correct lookback window. Full explanation coming soon when Journey 22 content is ingested.