Pair Trade Signals: Trade of the Month FEBRUARY 2022

Pair Trade Signals in Action!

Ameresco Inc (NYSE:AMRC) vs. TopBuild Corp (NYSE:BLD)

$446 in 12 Market Days for 45% Return on $1,000 Margin

(assumes $2.5k/leg and 5:1 CFD Margin)

Watch our detailed video below showing how one of our seasoned pair traders, Pedro Alonso, take you through his cheat sheet on how to filter the best Pair Trade Signals.  He shows how AMRC/BLD met the grade and produced a chunky gain in just 12 trading days:

pair trade signals

Generate Immediate Pair Trade Signals using our Curated FAST 50 U.S. Equities Pairs

At PairTrade Finder® we analyse over 2,200 U.S. equities to find you the best USA stock pairs to trade.  That is your first trading checklist – we do all the hard work for you!  We update this analysis on a quarterly basis to ensure these pairs stay fresh and their correlations and cointegrations strong to offer you the highest-probability setups.

Then, with these great pairs pre-loaded into your 24/7 market radar Watchlist, you will receive live trading signals directly on-screen and by email.  You can then semi-autotrade these signals directly into Interactive Brokers’ Trader Workstation® for easy execution.

What filters do we use? Here’s the list:

  • USA (NYSE/NASDAQ/AMEX): > than $2 bln mkt cap (most much larger), > $2 million/day of avg. daily traded volume($)
  • Easy-to-borrow (depending on broker)
  • Similar fundamentals: same market, same sector, usually same industry sub group. Beta-similar, market-cap-similar pairs
  • Backtested with a +/-2.7 standard deviation Entry Stretch, +/-1.0 standard deviation Exit Stretch
  • Two-year backtest period, Stretch & Ratio Moving Average set to 60-day lookbacks
  • COINTEGRATION: We select only pairs with a p-value of 0.10 or less over the last 18 months or so
  • AVG. CORRELATION: of minimum 50%, preferably higher over the two-year period
  • Minimum Average Profit per Trade of $200, preferably $250+ (based on $5,000/leg)
  • Compound Annual Growth Rate of Net Profits for each pair preferably in excess of Maximum Drawdown % i.e. positive reward/risk
  • Maximum historic drawdown < 20%, preferably <15% (before leverage)
  • Win Rate at least 70%
  • Maximum Days in Trade of 50 days. This setting represents our time stop. Average trade duration is around 12-15 days

The Trading Checklist, or “Cheat Sheet”

Once you receive a live pair trade signal from PairTrade Finder® PRO, we then apply the Trading Checklist Cheat Sheet.  It contains 12 elements to review to ensure you are choosing the highest probability setups to trade.  The video above shows you what it’s all about.

How Can I Get Started?

Subscribe today and receive a 15-Day Free Trial of PairTrade Finder® PRO with these FAST 50 U.S. Equities Pairs PRELOADED into your Watchlist.  PTF PRO will immediately begin generating live trading signals from these pairs for your further review!

We also provide you with our acclaimed 4-HOUR, 13-LECTURE PAIR TRADING VIDEO TRAINING COURSE taught by professional pair traders.  In it you will learn how to use our great software to easily backtest for the best pairs, filter trading signals for entry, apply sensible position sizing and trade management techniques, and manage a portfolio.  These videos will help to give you a great shot at reaching consistent profitability in your trading.

Find out all about it at www.pairtradefinder.com

Happy trading.

Geoff, Paul & The PairTrade Finder® Team

NB: The FAST 50 example pair trades in PairTrade Finder® PRO and the trading signals generated therefrom are provided for informational and educational purposes only. They should not be construed as personalised investment advice. It should not be assumed that trading using the parameters demonstrated by the Software will be profitable and will not result in losses. Please see our full Terms & Disclaimer here.

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