Decoded Intelligence Signal
Ornstein-Uhlenbeck Process (OU Process)
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
A mathematical model describing mean-reverting behavior in continuous time; used to estimate the speed at which a price series reverts to its mean and to calculate the expected half-life of a trade — the time for the deviation to return halfway to the mean.
Analysis Breakdown
A mathematical model describing mean-reverting behavior in continuous time; used to estimate the speed at which a price series reverts to its mean and to calculate the expected half-life of a trade — the time for the deviation to return halfway to the mean. Full explanation coming soon when Journey 22 content is ingested.