Looking for the Best Stock Pairs to Trade?
Welcome to the new FAST 50 U.S. Equities Pairs from PairTrade Finder®! A curated portfolio of 50 U.S. Cointegrated Stock Pairs, it is our effort to regularly deliver to our subscribers the best stock pairs to trade. The screenshot below links to our video presentation of the New March Vintage FAST 50 U.S. Equities Pairs:
PairTrade Finder®’s FAST 50 Cointegrated U.S. Equities Pairs – Finding The Best Stock Pairs to Trade!
We analyse over 1,800 U.S. equities to find you the best stock pairs to trade! We update this portfolio of curated stock pairs on a quarterly basis to ensure these pairs stay fresh and their correlations and cointegrations strong to offer you the highest-probability setups.
How Do We Find Them?
To be eligible to be included in the FAST 50, all component pairs must meet strict profitability and robustness measures as follows:
- USA Exchange-traded (NYSE/NASDAQ/AMEX)
- > than $2 bln mkt cap (most much larger)
- > $2 million/day of average daily traded volume($)
- Easy-to-borrow
- Similar fundamentals: same national market, same sector, usually same industry sub group
- Preference for beta-similar, market-cap-similar pairs
- COINTEGRATION: We use the Augmented Dicky Fuller test for co-integration and select only pairs with a p-value of 0.10 or less over the 2-year period
- CORRELATION: of minimum 50%, preferably higher
- Backtested with a +/-2.7 standard deviation Entry Stretch, +/-1.0 standard deviation Exit Stretch on the Core Ratio of the pair’s share prices
- Two-year backtest period
- 50-Day Standard Deviation, Stretch, and Ratio Moving Average lookback settings
- Minimum Average Profit per Trade of $300, preferably $400+ (based on $10,000/leg)
- Compound Annual Growth Rate of Net Profits for each pair preferably in excess of Maximum Drawdown % i.e. positive reward/risk
- Maximum historic drawdown < 20%, preferably <15%
- Win Rate at least 70%
- Maximum Days in Trade of 40 days. Average is 12 days
How Can I Get Them?
Subscribe today and receive a 15-Day Free Trial of PairTrade Finder® PRO with these FAST 50 U.S. Equities Pairs PRELOADED into your Watchlist. PTF PRO will immediately begin generating live trading signals from these pairs for your further review!
We also provide you with our eBook with 11 Pro Trading Tips, our 13 Tutorial Videos, and a 3-HOUR, 11 LECTURE PAIR TRADING VIDEO TRAINING COURSE taught by a professional pair trader.
Happy trading.
Geoff, Paul & The PairTrade Finder® Team
NB: The FAST 50 example pairs in PairTrade Finder® PRO and the trading signals generated therefrom are provided for informational and educational purposes only. They should not be construed as personalised investment advice. It should not be assumed that trading using the parameters demonstrated by the Software will be profitable and will not result in losses. Please see our full Terms & Disclaimer here.
