Topic: Trending/ranging market filter
I am building system portfolio. At the time there is 10 systems. 9 of 10 is trend following, break out systems, and one mean reversion. How you know you can separate them in these 2 big groups. It seems that a lot easier to make money is when "trend is you friend" However I want more diversified portfolio, I need more mean reversion system in it... that in slow periods, when markets tend to range I can offset losses from other trending, break out systems. Maybe someone knows good way how to filter market conditions to trending/ranging. If someone knows good indicator I could set it to generator and look for mean reversion strategies. Maybe some already walked this path? I saw somewhere that it is called regime analysis, however not much valuable info about this. Any info are welcome!