Monthly Archives: April 2020

You are browsing the site archives by month.

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 →