Choose a measurable deviation
A research rule might measure the distance between price and a rolling average, or a standardized residual. Specify whether the reference uses only observations available at the decision time. Price, spread and return deviations are different hypotheses.
Make the exit explicit
Define what counts as convergence, how long a position can remain open and what invalidates the idea. A growing deviation can reflect a changed market condition rather than a temporary error. Position limits need to be specified independently.
Use a controlled experiment
As an original research exercise, write two versions that differ only in the exit rule and keep the same data and cost assumptions. Compare their trade records, not just headline returns. No empirical outcome is implied by this exercise.
Turn the method into your research brief
Open the editable template, replace its assumptions and export the rules before implementing a test.
Use this template ↗Sources & references
References support specific definitions or methodological context. Examples and research checklists are explanatory; no performance result is claimed.