Tag Archives: Learn To Pair Trade

From Backtest to Profit: Meet the Top Stock Pairs Delivering 45% ROI in 9 Months

January 20, 2025 12:04 pm |

Boom! We’re bringing you the most profitable, battle-tested top stock pairs of 2024 — ready to jump-start your trading in 2025.

Introducing our TOP 50 “OUT-OF-SAMPLE” PAIR STARS – January ’25 Vintage. These pairs have been rigorously tested and carefully curated from 9 months of real-world performance.

What makes them out-of-sample? It means we’ve already put them to the test in live market conditions, and they’ve passed with flying colors.

Back in April 2024, we launched a comprehensive research project, paper trading a set of 132 pairs based on parameters set through exhaustive backtesting and filtering at that time. 

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Relative Value Trading: Eric Weinstein Loves Pair Trading?

September 16, 2024 12:15 pm |
Eric Weinstein: Bridging Quantum Physics and Finance

Eric Weinstein is a prominent intellectual whose expertise spans both the realms of quantum physics and finance (including the concept of relative value stock pair trading). With a PhD in Mathematical Physics from Harvard, Weinstein has made significant contributions to theoretical physics, particularly in areas like gauge theory and geometry. He is also the creator of the “Geometric Unity” theory, which aims to unify general relativity with quantum mechanics—an ambitious undertaking in the scientific world.

However, beyond his contributions to physics, Weinstein’s career extends into the financial domain. He has served as Principal of the Natron Group,

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How to Avoid Poverty In Retirement

July 22, 2024 9:36 am |

The human population has been a young one for most of its history: high fertility rates and short lifespans mean children have accounted for a large share of the population. But the world is ageing: there are now more people older than 64 than younger than 5 years old. This marks a historic demographic change.”

Source:https://ourworldindata.org/population-aged-65-outnumber-children

The above thought-provoking article reveals that, as of 2018, the population of human beings who are 65 and older has now surpassed those under 5 for the first time ever.

How the Earth’s Population Is Forecast to Age  … Read More →

Is Pair Trading Viable in 2024?

July 17, 2024 10:52 am |
In the fast-paced world of quantitative trading, the viability of stock pair trading remains a hot topic. While some classic pairs trading strategies have seen diminishing returns, recent research highlights new opportunities, particularly among ETFs. … Read More →

How to Become a Successful Prop Trader: Let Ultimate Alpha 3.0 Show You the Way

July 8, 2024 6:10 pm |
Ready to dive into pairs trading and become a successful prop trader? 

In the high-stakes world of trading, it is the bold innovators who triumph.

As T.S. Eliot said, “Only those who will risk going too far can possibly find out how far one can go.”

Our acclaimed PairTrade Finder® Ultimate Alpha 3.0 pair trading software, together with our pre-loaded Top USA Stock Pair Stars quarterly vintages, are your fast track to doing just that. Have a look at the numbers:

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How to Handle Trading Losses: Trading Psychology Vol. 1

June 12, 2024 3:02 pm |
All trading, and by necessary extension pair trading, is challenging and not for the faint-hearted. Large losses or a string of losses, especially if trading at excessive size, can devastate your capital, and with it you confidence and ability to continue.

 
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Understanding Pair Trading Risk Management: Stop Losses, Sectors, News & Fundamentals

June 5, 2024 9:45 am |
Pair trading is a sophisticated investment strategy that requires meticulous risk management to succeed. This blog post delves into key aspects of pair trading risk management, focusing on stop losses, sector considerations, news impact, and fundamental analysis. Watch our short video here, extracted from our acclaimed four-hour Video Training Course titled How to Successfully Pair Trade Stocks

 
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Pair Trading Risk Management: Position-Sizing

May 24, 2024 11:39 am |
Stock pair trading is a sophisticated investment strategy that involves matching a long position with a short position in two stocks with high historical returns correlation, cointegration, and fundamental similarity. Effective risk management is crucial to success, particularly in the area of position-sizing.

 
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SCALING-IN to Pair Trades Using Layers in PairTrade Finder®

April 24, 2024 11:06 am |
Listen up Pair Traders. Are you tired of entering a great looking pair trade only to have the Ratio diverge even further the next day or few days? As this then drags the moving average of the Ratio down with it, not only are you nursing a big loss, but even profits from a recovery may be small or non-existent. If only there was a way to time your entry over a few days by scaling-in to pair trades?

 
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Trading to Monthly or Weekly Profit Target Or Take Every Systematic Trade? Thoughts.

March 8, 2024 11:13 am |

In the complex arena of algorithmic trading, practitioners grapple with a pivotal choice: should they adhere to trading with specific targets, or should they capitalize on every opportunity their system flags? This decision can significantly impact their trading journey.

Trading to Target: The Pros and Cons

Opting for trading to target means setting predefined objectives, such as weekly or monthly earnings benchmarks. George Soros, known for his exceptional trading acumen, once said, “It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.”

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