Stock Pair Trading System: Use It to Profit In Uncertain Times

Life Interrupted?

The recent life interruptions occurring for millions of people worldwide have left many at-home with too much free time.  Are you wondering how to re-deploy your time and energy to meet your personal and financial goals?  Is one of your goals is to develop a second or multiple income stream to allow you diversify away from reliance on a job (or a lack thereof)?  If so, we believe we can be of value-add.  Why not take the time with us to learn our acclaimed and proven stock pair trading system?

stock pair trading system

Our Stock Pair Trading System The stock pair trading system embedded in PairTrade Finder® PRO allows retail traders to easily learn and use a proven hedge fund strategy.  Read More →

Pair Trading Help: Trade of the Month June 2020

KBR, Inc. (KBR:NYSE) vs. Tetra Tech, Inc. (TTEK:NASDAQ)

$1,257 in Five Market Days, 31.4% Return on Margin.  Need some pair trading help?  Best cointegrated stock pair trade for the month of June 2020! KBR and TTEK are a correlated and cointegrated stock pair that we selected in late March for inclusion in our April 2020 Vintage of the Top 30 U.S. Equities Pairs.  The pair continues to deliver profits.

Watch our video here to see how it’s done:

Pair Trading Help

Backtest Results of this Correlated Stock Pair:

In backtesting over the three years prior to 1 April 2020,

Read More →

Stock Pair Trading Through a Market Crash: Generate Consistent Profits

Stock Market Volatility Returns with a Vengeance

Last week in the U.S. Equities indices was certainly the definition of “interesting times”.  The DJIA crashed by over 1,800 points or 6.9% on Thursday, only to recover about 1.9% on Friday.  The S&P 500 behaved similarly.  The NASDAQ was a bit less volatile, but we think it’s saving up for a chance to really out-do the others.  Quite some volatility.  However, for many of our clients, it was an excellent opportunity to generate increased profits by stock pair trading through a market crash.

stock pair trading through a market crash

Market Volatility Has Been Shown to Increase Pair Trading Returns

We predicted this continuing volatility in our earlier blog post in April of this year. 

Read More →

Correlated Stock Pair Trade of the Month: April 2020

Eastman Chemical Company (EMN:NYSE) vs. Element Solutions Inc. (ESI:NYSE)

$1,210 in Four Market Days, 30.3% Return on Margin.  Best correlated stock pair trade for the month of April 2020!

ESM and ESI are a correlated stock pair that we selected in late March for inclusion in our latest April Vintage of the Top 30 U.S. Equities Pairs.

Watch our video:

correlated stock pair

Backtest Results of this Correlated Stock Pair:

In backtesting over the three years prior to 1 April 2020, cointegrated and correlated stock pair EMN/ESL delivered 8 closed trades,

Read More →

Best Trading Strategy for Lockdown Volatility?

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. 

Read More →

The Stock Pair Trading Strategy and the Secret of Cointegration

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.  

Read More →

Best Pair Trade of the Month: March 2020

Avis Budget Group Inc. (CAR:NASDAQ) vs. United Rentals Inc. (URI:NYSE)

$6,983 in 3 Market Days, 175% Return on Margin.  Best pair trade for the month of March 2020!

We selected CAR/URI to form part of our updated Top 30 U.S. Equities Pairs for the 1 March 2020 vintage.

Best Pair Trade

Backtest Results:

In backtesting over the three years prior to 1 March 2020, cointegrated and correlated stock pair CAR/URI delivered 5 closed trades, a 100% win rate, an average net profit per trade of $906, and over $4,700 in total profits:

Best pair trade

Actual Trading Result

In actual trading,

Read More →

New Top 30 Cointegrated Stock Pairs Post a Blowout 11.9% Profit in March

cointegrated stock pairs Profit From Volatility by Using Cointegrated Stock Pairs

We’ll cut to the chase.  Extreme volatility juices cointegrated stock pairs trading returns, and market crashes can bring special opportunites.  We can show you a lot of research studies that support this assertion.

That’s why professional traders and managers are attracted to the stock pair trading strategy.  Pair Trading, which involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” securities, provides protection from market crashes, controlled risk, low correlation to the market averages and ability to generate significant and consistent returns.  Multiple recent research studies have demonstrated returns to be in the range of 2%-4% per month*,

Read More →

Top Pair Trade of the Month: February 2020

Top Pair Trade: W.R. Grace vs. Olin Corporation delivered a 100% win rate on 8 pair trades over the last 3 years in backtesting.  Its CAGR% was over 17% and Maximum Drawdown was 5%, over 3:1 reward/risk. Latest live trade ends in profit of $1,150 in 7 market days, for 28% Return on Margin! (Based on $10k/leg and 5:1 CFD margin.) Watch our trade analysis video here. Top Pair Trade

Happy pair trading.

Geoff, Paul & The PairTrade Finder® Team

NB: The Top 30 example equities pairs in PairTrade Finder® PRO and the trading signals generated therefrom are provided for informational and educational purposes only. 

Read More →

US Stock Pair Trading Profitability: 16.1% in 3 Months. Out-of-Sample Results Meet Expectations

Here at PairTrade Finder® we receive constant requests from customers and potential customers to demonstrate the actual pair trading profitability of US stocks using the PairTrade Finder® PRO system.  Is it profitable and, if so, how profitable?  Can it be used as a new career?  Can it have a significant impact on the lives of its practitioners?

Pair Trading Profitability Track Record

We don’t publish a real money track record.  Nor do we make any promises about your potential returns from pair trading.

However, we are able to show you out-of-sample results for our Top 30 US Equities Pairs released on 12 Nov 2019 until 15 February 2020 as an actual recent example. 

Read More →