What problem does it solve?
For traders managing a basket of correlated stocks, manually identifying true underperformers (not just stocks dropping with the broader market) and applying consistent risk filters is time-consuming and prone to emotional bias. This skill automates that process to systematically capture mean reversion opportunities while avoiding common pitfalls like catching falling knives or overexposing to recently bought positions.
Core Features & Use Cases
- Cross-Sectional Laggard Identification: Compares each stock's N-day return to the pool's median return to isolate stock-specific underperformance, ignoring broad market moves that affect all holdings equally.
- Built-In Risk Guardrails: Includes a 50-day moving average filter to avoid buying stocks in confirmed downtrends, a rebuy throttle to prevent stacking positions across consecutive trading ticks, and cash balance checks to stay within budget limits.
- Use Case: If you run a paper trading portfolio of 8 correlated tech stocks, this skill will automatically buy the worst performer when it underperforms the group by at least 5% and trades above its 50-day moving average, no manual screening required.
Quick Start
Invoke the strategy_mean_reversion skill during a scheduled master_trading run to automatically evaluate your buyable stock pool and place small, risk-controlled buy orders for qualifying underperformers.
