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.

… Read More →

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 →

MARCH 2023 FAST 50 First Month Live Trading Signals Results

May 15, 2023 10:20 am |
13 Trades with 11 Winners, 3.4X Reward/Risk 85% Win Rate, +3.8% for the Month $8,006 profit on the closed trades so far… 

(EOD signals, available to trade, assumed $120,000 account equity*)

Our latest FAST 50 U.S. Equity Pairs Vintage were released on 26 Feb 2023.  

If you had replicated all open trades on the Monday market open after launch, and then taken all of the UNFILTERED trading signals called by these pairs for 4 weeks up to 25 March, you would have had:

11 Winners out of 13 closed trades

85% Win Rate

3.4x Reward/Risk

$8,006 profit on the closed trades so far… 

… Read More →

Pair Trade Money Management

May 15, 2023 10:00 am |
“Dog” of the Month April 2023: AXTA vs. NVGT Use Money Mgmt to Turn a -$703 Loss to Profit

For any good trading system, money management is a critical component to overlay. We refer to position sizing and trade management as “Money Management”.

April’s Trade of the Month barked and bit – like a badly behaved dog to be fair. However – if you are using prudent pair trade money management techniques – you can force a scary Cerberus back into his cage and turn this losing trade into a winner! Watch as professional pair trader Pedro Alonso takes you through what you need to know in this great VIDEO HERE:

See Pair Trade Money Management Techniques in Action

Learn Pair Trade Money Management Techniques Using Our FAST 50 Cointegrated U.S. … 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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Stock Pair Trading Signals: Trade of the Month Feb 2023

March 10, 2023 9:03 am |
Franklin Templeton vs. BNY Mellon Perfect Pair Trade? $965 and 28% Return on Margin in 4 Market Days! $10k/leg, 5:1 CFD Leverage

Looking for a “side hustle” that can be learned relatively easily and can generate a recurring income?

How about stock pair trading with our award-winning software, PairTrade Finder® PRO? Next, add in the live stock pair trading signals generated from our pre-loaded FAST 50 U.S. Stock Pairs! Watch our VIDEO:

stock pair trading signalsSubscribe for High-Probability Stock Pair Trading Signals Today! www.pairtradefinder.com Leverage Our Expertise: Receive Stock Pair Trading Signals Using PairTrade Finder’s FAST 50 Cointegrated U.S. … Read More →

Stock Pair Trading with the Copula Method vs. the Cointegration Method – A Layperson´s Explanation

February 22, 2023 12:03 pm |
copula method vs. cointegration method in pair trading stocks

Stock pair trading is a popular strategy among algorithmic traders. It involves identifying two stocks that have a historical relationship and trading the pair long/short based on the deviation from this historical relationship. The idea is to buy long the underperformer in the pair and sell short the overperformer once their relative performances have diverged. The trader profits if this relative performance re-converges. In this blog post, we will discuss two statistical approaches used in stock pair trading: the copula method and the cointegration method.

The Copula Method

The copula method involves modeling the marginal distributions of the two stocks separately and then using a copula function to model the dependence structure between them.

… Read More →

Automated Pair Trading Signals

February 21, 2023 9:00 am |
Trade of the Month January 2023 Barrick Gold vs. Southern Copper +$726 and 18% Return on $4,000 Margin in 5 Market Days

(based on 5:1 CFD margin)

Learn a proven trading strategy that is viable in all market conditions and is backed up by decades of academic research and real-world application…stock pair trading! WATCH OUR VIDEO of pro pair trader Pedro Alonso as he takes you through this month’s selected stock pair trade analysis. This live signal is from the automated pair trading signals of our November FAST 50 U.S. Equities Pairs:

Automated pair trading signals Don´t Have Time to Backtest and Filter? … Read More →

Pair Trade of The Month: November 2022

December 6, 2022 1:33 pm |
B2 Gold Corp. vs. Pan American Silver Corp. $1,443 in 14 Market Days! 36% Return ($10k/leg at 5:1 CFD Margin) The Best Stock Pairs to Trade www.pairtradefinder.com Pair Trading for Income?

Looking for a part-time occupation that can be learned relatively easily and can generate a recurring income?

That can take as little as 1 hour/day or even less?

That uses a share trading system that has been shown to deliver consistent profitability over many decades and in all stock market conditions?

Look no further than stock pair trading with our award-winning software,

… Read More →

Scaling-In to Pair Trades: Turbo-Charge Returns with Layers on Low Volatility Stock Pairs

November 1, 2022 10:45 am |
October Trade of the Month Agnico Eagle Mines vs. Harmony Gold Corp $3,346 in 21 Market Days. 42% Return on Margin

($10,000/leg, Double Layer Entry, 5:1 CFD Margin)

Many of you know that our award-winning pair trading software, PairTrade Finder® PRO, gives you the ability to program and execute multiple layered entries (scaling-in to a pair trade).

Watch our video taking you though our October Trade of the Month, where pro pair trader Pedro Alonso demonstrates scaling-in to a pair trade:

How Do I Learn Scaling-In to a Pair Trade?

We have produced a tutorial on scaling-in and it forms part our acclaimed Pair Trading Video Course.

… Read More →
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