At PairTrade Finder® we’ve developed a powerful, systematic approach to stock pair trading that’s delivering exceptional results. Today we provide an update on our stock pair trading software’s PTF Beta Portfolio, up to 1 August 2025:
PairTrade Finder®’s GH Beta Portfolio: Alpha Found!
Since January 1, 2025, our PTF Beta Portfolio, powered by the PTF Ultimate Alpha 3 system, has posted a remarkable +13.4% return . This performance easily outpaces the S&P 500 ETF (SPY) at +6.8%, the largest Long/Short ETF (FTLS) at +1.0%, and the risk-free rate at +2.3%. Our PTF GH Beta Portfolio has executed over 430 closed trades across 136 USA stock pairs. These have been executed via an Interactive Brokers paper trading account using our autotrading feature (see chart above). Please note we are using institutional position-sizing and leverage limits in this track record. These limits are at about 50% of what we would call “Retail”. (Month-end leverage used is reported below in the table, 2025 average is 1.4x).
But what truly sets our strategy apart is its risk-adjusted performance. With a maximum drawdown of just -3.6% (versus SPY’s -18.8% and FTLS’s -11.5%), an annualised Sharpe Ratio of 1.51 (versus SPY’s 0.43 and FTLS’s -0.12), and an annualised Sortino Ratio of 2.99 (versus SPY’s 0.72 and FTLS’s -0.20), our portfolio demonstrates exceptional reward-to-risk characteristics:
Unlock Non-Correlated Alpha with Stock Pair Trading
What drives our success? A cointegration-based stock pair trading strategy, blending advanced mathematics with disciplined execution to deliver consistent, market-neutral and uncorrelated equity returns.
Powered by our cutting-edge stock pair trading software, PTF Ultimate Alpha 3, and our proprietary Top USA Stock Pair Stars screening system, we aim to generate steady alpha in any market environment. Our fully market-neutral approach emphasizes systematic pair selection, layered entries, precise execution, and robust risk controls. See our pair selection and filtering criteria here.
Designed to minimize downside while capturing upside, it leverages institutional-grade leverage for optimal performance. This strategy ensures resilience and profitability, making it a standout choice for savvy investors/traders.
The Strength of Cointegration in Stock Pair Trading Software
Pair trading is a market-neutral strategy that capitalizes on relative price movements by simultaneously buying one stock and selling another. These shares are typically within the same sector or industry. The secret lies in cointegration, a statistical method that identifies stock pairs with relative performance that tends to move together over time, despite short-term deviations. Unlike simple correlation, cointegration ensures the spread (price difference) between two stocks is mean-reverting, reliably returning to its historical average.
This mean-reverting dynamic is the foundation of our stock pair trading software. By pinpointing cointegrated stock pairs, we exploit temporary mispricings—buying the undervalued stock and shorting the overvalued one. When the spread converges, profits are secured. This approach excels in volatile markets, as it thrives regardless of broader market trends, making it ideal for generating alpha in uncertain conditions. But it requires quality real time and historic data and sophisticated software!
Why Choose PTF’s Ultimate Alpha 3 Stock Pair Trading Software?
Our stock pair trading software has now clearly shown – available to audit – it can generate non-correlated alpha, enhancing portfolio diversification and stability. By focusing on relative price movements, it reduces exposure to market-wide risks, offering a buffer during turbulent times. What’s more for traders, the strategy’s reliance on statistical precision and automation eliminates emotional biases, ensuring consistent, disciplined execution.
For investors seeking a resilient, high-performing strategy, our stock pair trading software provides a powerful edge. See the results above!
Now Is the Time to Get Busy
The PTF GH Beta Portfolio’s 2025 results showcase the potential of cointegration-based pair trading to outperform traditional benchmarks with lower risk. Ready to harness the power of stock pair trading software? Watch PairTrade Finder®’s video on cointegration to see how PTF Ultimate Alpha 3 can transform your portfolio and your trading results today!
Happy Trading!
The PairTrade Finder® Crew
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