Category Archives: Uncategorized

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,

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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. 

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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.  

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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,

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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*,

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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. 

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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. 

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Learn to Trade Stocks Like a Professional Hedge Fund Trader

The start of 2020 is a great opportunity to decide how to re-deploy your time and energy to meet your goals.  If one of your goals is to develop a second or multiple income stream to allow you diversify away from reliance on a job, then why not take the time with us to learn to trade stocks for income?Learn to Trade Stocks

PairTrade Finder® PRO, the Leading Online Pair Trading Platform

Traders from around the world have downloaded PairTrade Finder® PRO over 6,500 times.  The platform has sold over 2,250 licenses and subscriptions to-date.  It has helped many new and seasoned traders alike achieve consistent profitability in their trading.

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PairTrade Finder® PRO: The Leading Online Long/Short Trading Platform

Long/Short Trading

PairTrade Finder® PRO is a downloadable Windows trading software that allows you to input over one million instruments from around the world, including stocks, currencies, futures and options into the software to find long/short trading opportunities. Also useable on MacOS through Parallels or Bootstrap.

Downloaded over 6,500 times and having sold over 2,200 licenses, it is the leading online pair trading software available today.

Learn more today at www.pairtradefinder.com

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Trading Psychology: Use Our Acclaimed Software Platform to Gain Confidence

trading psychology

Trading Psychology is More Important Than Your System

The personal attitude (trading psychology in our parlance) required to succeed in pair trading is the same attitude required to succeed in any other style of trading or anything else in life for that matter. Every trading system or style will have drawdowns and soft patches, that’s the nature of the trading beast. There is not one trading system we are aware of that will produce profit, day in day out all the time (except Virtu’s ultra-high-frequency algorithms co-located at exchanges at the time of their IPO).

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