Japan Finance Minister Katayama: Two-hour talks with US Treasury Secretary Bessent. Discussed FX and financial markets

Well slippage is nice if you open into the knife edge - it benefits you. You're looking to revert after all. The key is to judge when the market begins to be oversold or overbought and then use that as a state to begin assessing if you should enter or not.

You need a way to determine what the fair value price is and then use that as your exit. Something very simple is the current 200MA value - it's not sufficient on its own (really it's not) but it does give you good starting point as it provides an exit price that changes over time (the dynamic price is key). Once it crosses your open price you know that trade can never make profit any longer.

The steam-roller occurs when you mean revert but your fair value price crosses your open prices. This is what you must avoid! If you use the 200MA you will see that the MA sort of spikes up or down very fast in these situations.

To avoid this, most mean reversion systems build a ranking system that ranks various (non-correlated exposure//returns) parameterisations of the strategy and then trades the most profitable opportunities - or uses the rank system to change the trade sizing. This can be something that's done across pairs too.

But very simply - you could use 50 MA, 200MA, 1000MA and these would provide short, medium, long term fair value prices which you could rank when the open opportunity presents itself. You might find the 50MA gets steam-rolled but the 200 and 1000 revert after a while.

If you are willing to trade 1 lot, to profit from mean reversion break it up into smaller sizes. Say 0.1 or 0.25 and open them with an eye to bring your average price down (or up). It makes the strategy much more profitable because of the difficulty of picking the precise reversion moment (this is a key point). But make sure to have a bound on it because you might end up making a Martingale strategy by accident (which you must avoid at all costs)