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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