Tag Archives: Pair Trading Strategy

Finding the Most Profitable Settings to Pair Trade Stocks

September 25, 2023 10:04 am |

For those of you that have mastered the basics of using our award-winning platform PairTrade Finder® PRO V2, here’s a new exercise. What are the most profitable settings to pair trade?

Watch this great video prepared by Pedro Alonso as the August Trade of the Month entry. Instead of one trade, he compares all trades on his proprietary database of 250 pairs over a 27-month period using different settings. He sensitizes for Entry Stretch and uses the RSI Filter capability of PairTrade Finder® PRO V2. He then choses his preferred most profitable settings to pair trade these stocks AND examines the capital required and the Risk per Trade they imply.

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Pair Trading Software: A Smart Way to Trade Stocks

August 15, 2023 8:23 am |
If you are looking for a stock trading strategy that can reduce your risk, increase your returns, and take advantage of market inefficiencies, why not consider pair trading? … Read More →

Unleashing the Power of Equities Pair Trading: Exploring Cointegration and Expected Returns

June 8, 2023 12:23 pm |

In the world of trading, where opportunities and pitfalls abound, equities pair trading stands out as a strategy that offers unique advantages. For intermediate-level traders with a solid understanding of trading and basic mathematics, employing the cointegration method in stock pair trading can unlock a world of potential gains. In this article, we delve into the benefits of equities pair trading using the cointegration method and explore the likely expected trading returns based on the latest academic research focused on S&P 500 stocks.

Understanding Equities Pair Trading

Equities pair trading involves selecting two correlated stocks and taking positions based on the historical relationship between their prices.

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Trade of the Month MAY 2023

June 7, 2023 11:38 am |
The power of stock pair trading is long proven in the investment world, where it is valued for its ability to generate low-risk profits month in and month out, sometimes on a weekly basis. … Read More →

Best Stock Pairs to Trade? PTF PRO FAST 50!

April 18, 2023 5:20 pm |
Trade of the Month March 2023: Raymond James vs. Charles Schwab. $916 in 3 Market Days, 23% Return ($10k/leg, 5:1 CFD margin)

Bank stock crashes and crazy market volatility got you down???

Don´t let them! Instead, use the market’s volatility to squeeze profits from stock pair trading! And where do you find the best stock pairs to trade? Look no further than our FAST 50!

Watch our video as professional pair trader Pedro takes you through a killer pair trade on this financial pair in March. Why he loved the trade and the handsome reward/risk profile:

How to Find the Best Stock Pairs to Trade

When you subscribe to PairTrade Finder® PRO,

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Best Trading Strategy for Lockdown Volatility?

April 20, 2020 8:47 am |

What is the best trading strategy for highly volatile markets?  The results of our Top 30 U.S. Equities Pairs over the last four months would suggest U.S. equities pair trading.  If you had been trading the unfiltered trading signals from our Top 30 U.S. Equities Pairs, as updated, from 12 November 2019 until 1 April 2020, these generated an almost 30% return on account equity.  The S&P 500 returned -19.5%.  That’s almost 50% alpha in 4.5 months.  Detailed results are here and here.

best trading strategy

The results of our research and development to create the Top 30 and to level up the power of our stock pair trading platform PairTrade Finder® PRO are very encouraging. 

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The Stock Pair Trading Strategy and the Secret of Cointegration

April 12, 2020 9:39 am |

Learn one of the best-kept hedge fund secrets for deploying the stock pair trading strategy – cointegration.  Used by professionals for over 50 years to deliver consistent monthly profits from stock trading, regardless of market direction. It also carries the additional benefit of protection from market crashes and big account drawdowns through the use of hedging.

Click here to watch our video that explains it all:

stock pair trading strategy

Combining Cointegration and Stock Pair Trading for a Winning Combination

Professional traders and hedge fund managers love to use the stock pair trading strategy.  

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Equities Pair Trade of the Month: October 2019

November 1, 2019 9:35 am |
PairTrade Finder® PRO Top 30 US Equities Pairs

Alliance Resource Partners LP vs. Cleveland-Cliffs Inc.

Entry on 3 Sept 2019 at 3.22 sd.  Exit on 28 Oct 2019 at -0.01 sd.

$2,205 in 56 Days

55% Return on Margin

(based on $10,000/leg and 5:1 CFD leverage)

WATCH OUR EQUITIES PAIR TRADE VIDEO:

equities pair trade of the month

Learn Equities Pair Trading with PairTrade Finder® PRO
  • Seek consistent profits regardless of market direction
  • Use hedged positions to protect from a market crash (you are long and short correlated stocks in equal measure)
  • Create,
… Read More →

TOP TRADE SEPTEMBER 2019: AIMC v. TKR

October 3, 2019 11:25 am |
Altra Industrial Motion Corp. (AIMC:NASDAQ)  vs. The Timken Company (TKR:NYSE)
  • Entry Trading Signal of 25/7/2019, Exit Trading Signal 24/9/2019
  • $474 in 40 Market Days
  • 19% Return on Margin

(based on $10,000/leg and 4:1 CFD margin)

PLAY VIDEO ANALYSIS:

pair trading signal Learn to Pair Trade Stocks with PairTrade Finder® PRO
  • Seek consistent profits regardless of market direction (Bull market? Bear market? Sideways?  It doesn’t matter with pair trading)
  • Use hedged positions to protect from a market crash (you are long and short correlated stocks in equal measure)
  • Create,
… Read More →

Pair Trading Stocks: Monday Morning Thoughts for Inspiration

July 8, 2019 12:13 pm |

PairTrade Finder® PRO is the industry-leading software for pair trading stocks, having been downloaded more than 6,000 times and selling over 2,000 licenses worldwide. Created over more than ten years by a team of developers and finance professionals formerly with Morgan Stanley, Salomon Brothers Inc and GE Capital, it is a truly global platform like no other.

Pair Trading Stocks for Recurring Income

What and Where Can It Trade?

Our pair trading software is designed with online traders in mind.  PairTrade Finder® PRO works, is easy to learn and use, and comes out-of-the-box with free delayed Yahoo Finance stock data. 

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