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Dual Regression Strategy Tester

Two regression approaches: linear regression mean-reversion signals and logistic regression up/down classification.

Feb 23, 2026, Eric

Approach

Fit a linear trend line to price. The residual (price minus trend) is the de-trended price. When the residual deviates by more than the threshold in standard deviations, it generates a mean-reversion signal: buy when price is below trend, sell when above.

0.5σ (more signals)3.0σ (fewer, stronger)

Trend slope

-0.0008/day

0.000

Signals generated

43(2419↓)

Price vs. Trend Line

Blue = price. Dashed = linear trend. Green dots = buy signals. Red dots = sell signals.

Residual Z-Score

Cyan = z-score of price residual. Dashed lines = ±1.5σ signal thresholds.