Which Forex Pairs are Generally Trending and Which Ones Tend to Revert to the Mean In this article, I will systematically investigate the tendency of different Forex pairs to either trend or revert to the mean . I will do so by backtesting a simple trend-following strategy . (Code available on Github. See the end of this article.) “The trend is your friend.”, is a very well known trading adage. Another thing you read a lot in trading books, blogs, etc. is that the market only trends 20, 30, 40, xx% of the time. I was wondering how these ideas relate to the Forex markets. I asked myself the following questions: Do all forex pairs have the same trending tendency? Are there any pairs that are actually generally more mean-reverting in nature? And which Forex Pairs are generally trending and which ones tend to revert to mean? The reason I was asking myself these questions, is because I have experienced different behaviors between forex pairs while trading the same str
