In backtesting over the two years prior to 5 January 2021,
… Read More →Author Archives: Pairtrade Finder®
Stock Pair Trade of the Month January 2021
Autohome Inc. (NYSE:ATHM) vs. Twitter, Inc. (NYSE:TWTR)
38% Return in 8 Market Days!
We are highlighting a member of our new FAST 50 U.S. Equities Pairs launched in January 2021 as our stock pair trade of the month for January. Autohome Inc. (NYSE:ATHM) vs. Twitter, Inc. (NYSE:TWTR) . The latest trade called on the pair didn’t disappoint, delivering $456 Net Profit and a 38% return on margin in 8 days, based on $3,000/leg position size… Here is a detailed trade entry and exit analysis for this example pair trade:
Video: Pair Trade of the Month Jan 2021
The Best Trading Strategy Ever? The Results Speak for Themselves…
Is Pair Trading of stocks and other securities the best trading strategy available?
Pair Trading has been revealed as the trading strategy behind the world’s most successful trader, Jim Simons, who achieved a 2,710% return on billions of dollars over 10 years. The flagship fund of Jim’s firm, Renaissance Technologies, is called the Medallion Fund. It is still the best long-term performing hedge fund in history.
Don’t take our word for it! Here’s what the Founder and President of Renaissance Technologies had to say publicly in Congressional testimony:
The fund’s 30-year rate of return (66% p.a.) turned $1 invested in 1988 into over $4,010,000 by 2018 (Source: Wikipedia)
And an excerpt from “Who Is The Best Trader In The World?
… Read More →Stock Pair Trading the Top 30 Nov 2020 Vintage: First Five Weeks’ Results
For those of you who are new to this site, stock Pair Trading involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” stocks.
Stock Pair Trading has been shown to provide 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*, on a 4:1 leverage basis, over more than a decade.
Add in the use of Cointegrated Stock Pairs and the historical returns look even stronger**.
… Read More →ADVANCED PAIR TRADING 301: How to Increase Profitability and Lower Volatility
Trailing Stops, Take Profits and Corporate Action Screening…
Watch as Geoffrey S. T. Hossie, Managing Director of Event Driven Investor Ltd., takes you through more advanced pair trading techniques. Techniques that can increase profitability and lower volatility in stock pair trading returns.
Covers the use of trailing stops, take profit targets, and avoiding fundamental-value-shifting corporate actions.
All using PairTrade Finder® PRO v2.2 and the latest August Vintage of the Top 30 U.S. Equities Pairs.
Watch the video here:
PairTrade Finder® PRO is our acclaimed pairs trading software platform.
… 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 RecordWe 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 →New Year Reflection on Trading: You Know Nothing…
As a first reflection on trading to kick off the year 2020 (as part of the Western world measures the calendar), we would like to link to a blog post by Jared Dillian, and ex-Lehman Brothers trader, now writing for Real Investment Advice.
Why do we highlight his post? We think it shows our reflection on trading – that in a world of ever changing market regimes, where objective truth (value) is non-existent – perhaps a legitimate way of approaching profit generation is to follow a trading system that seeks to profit from RELATIVE value. The perceived value of Stock A vs.
… Read More →TOP TRADING SIGNAL AUGUST 2019: PTEN vs. VET
Entry Trading Signal of 30/7/2019, Exit 20/8/2019:
Patterson-UTI Energy Inc. (PTEN:NASDAQ) vs.
Vermilion Energy Inc. (VET:NYSE)
$1,296 in 16 Market Days
33% Return on Margin
(based on $10,000/leg and 5:1 CFD margin)
- 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,
Pair Trade of the Month July 2019
Medtronic plc vs. Zimmer Biomet Holding Inc
$919 in 40 Days
23% Return on Margin
(based on $10,000/leg and 5:1 CFD margin)
- 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, backtest and generate trade signals from your own custom long/short portfolio
- Manage the whole trading plan in under an hour/day,
Learn to Trade Stock Pairs: Monday Morning Thoughts for Inspiration
Exhaustive and robust academic research of stock pair trading strategies on the S&P 500 show consistent trading gains. Stock pair trading, especially using cointegration for selecting pairs, has shown historic profitability of up to 5% per month. Learn to trade stock pairs in our 30 Minute Webinar. Sign up for a 15-Day Free Trial and get our eBook Trade Like a Hedge Fund for free.
Free triallers also receive access to our Pair Trading Video Training Course. Taught by a professional pair trader, this series presents pair trading in simple,
… Read More →PairTrade Finder® Mini Educational Series: Learn to Pair Trade, Lesson Three
Today, we are sending you the third and final lesson in our 3-part PairTrade Finder® Mini Educational Series.
Remember, in backtesting, the average profit per trade for our Top 30 US Equities Pairs is over $600 and win rates are in excess of 75%. Just one successful trade can cover your entire annual subscription fee. Join our Free Webinar to learn more.
Happy Trading!
The PairTrade Finder® Team
“Quants” is the name Wall Street uses for market researchers who use quantitative analysis to develop profitable trading strategies.
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