Mean Reversion Strategy: Rules, Setup, and Results

What if you could systematically buy market bottoms… without guessing?

In this video, we break down a mean reversion strategy using Casey Bands — a lesser-known indicator that focuses on true price extremes, not just closing prices like most tools.

At first glance, the idea is simple:
👉 Buy when price drops below an extreme level
👉 Exit when it returns back

But when we tested it…

The results were surprising.

• A solid win rate across decades
• Data tested from 1970 all the way to 2026
• A small tweak that dramatically improved performance

And here’s the interesting part:

Most of the improvement didn’t come from the entry…

…it came from changing how you exit trades.

Watch the full video here: