Hey Trader, You’ve probably heard that before: Trend following and mean reversion are usually framed as a contest. Which one wins? Which one has the better Sharpe? Which one survives 2026? That’s the wrong test. A trend system gets paid when movement persists. A mean-reversion system gets paid when movement snaps back. One wants continuation. The other wants exhaustion. If you only compare them as standalone systems, you miss the main reason both still matter. I already covered the direct comparison in Trend Following vs. Mean Reversion: Which Strategy Wins in 2026?. But this test goes one layer deeper. Opposite Edges Trend following can look broken for a long time before it pays. It can lose often, then make a large amount when a move extends. The hit rate can look bad. The equity curve can go quiet. The strategy survives because the winners are supposed to be much larger than the losers.

Trend Following + Mean Reversion Still Work (But Most Traders Use Them Wrong)
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