Half-Life Substitute for Stationarity

Course Name: Mean Reversion Strategies In Python, Section No: 12, Unit No: 1, Unit type: WaterMarkVideo

I don’t have a question. I just wanted to comment that I was unaware of half-life in the context of mean-reversion. If I understood the lesson correctly, half-life allows the trade to loosen his/her strict requirement that time series must be stationary before entering a trade. This changes my approach completely, because it opens up more trading opportunities.

It’s great to know this lesson has opened up new perspectives on your trading approach and potential opportunities.