Tag Archives: Pair Trading Education

Pair Trading Help: Trade of the Month June 2020

KBR, Inc. (KBR:NYSE) vs. Tetra Tech, Inc. (TTEK:NASDAQ)

$1,257 in Five Market Days, 31.4% Return on Margin.  Need some pair trading help?  Best cointegrated stock pair trade for the month of June 2020! KBR and TTEK are a correlated and cointegrated stock pair that we selected in late March for inclusion in our April 2020 Vintage of the Top 30 U.S. Equities Pairs.  The pair continues to deliver profits.

Watch our video here to see how it’s done:

Pair Trading Help

Backtest Results of this Correlated Stock Pair:

In backtesting over the three years prior to 1 April 2020,

Read More →

Top Pair Trade of the Month: February 2020

Top Pair Trade: W.R. Grace vs. Olin Corporation delivered a 100% win rate on 8 pair trades over the last 3 years in backtesting.  Its CAGR% was over 17% and Maximum Drawdown was 5%, over 3:1 reward/risk. Latest live trade ends in profit of $1,150 in 7 market days, for 28% Return on Margin! (Based on $10k/leg and 5:1 CFD margin.) Watch our trade analysis video here. Top Pair Trade

Happy pair trading.

Geoff, Paul & The PairTrade Finder® Team

NB: The Top 30 example equities pairs in PairTrade Finder® PRO and the trading signals generated therefrom are provided for informational and educational purposes only. 

Read More →

Stock Trading Strategies: Long-Only Has Been Amazing…BUT

A Word on Stock Trading Strategies

Since Q2 2009, the most common of stock trading strategies – passive “long-only” i.e. just buy the S&P 500, would have delivered 348% or a 15.2% CAGR with dividends reinvested and without transactions costs or management fees (Source: https://dqydj.com/sp-500-return-calculator/)

But with the S&P 500 at or near a new all-time high, is the risk still weighted in your favour?  Perhaps, if you can hold 20-30 years.  But what about the next few years?

If you had held the S&P 500 from January 2008 until January 2009, the S&P 500 delivered a -35.6% return with dividends reinvested and without transactions costs or management fees (Source: https://dqydj.com/sp-500-return-calculator/)

The man in who made the quotation in the picture above is Larry Hite.

Read More →

Find Your Trading Edge: It’s a State of Mind, a System and a Marathon…

Financial Freedom through trading edge

Find Your Trading Edge…

Here at PairTrade Finder® we aim to trade stock, ETF and FX pairs with high cointegration, correlation and historic win rate.  Why?  Because even though a lot of these trades will fail, if you are persistent and disciplined, in the end the edge is with you.

What is “edge”?  You hear traders talk about it all the time.  Here’s an interesting definition from Investopedia’s Alan Farley:

A trading edge is a technique, observation or approach that creates a cash advantage over other market players. It doesn’t have to be elaborate to fulfill its purpose;

Read More →

Trading Success: Leverage Our Platform for Consistent Pair Trading Profits

Get your stock trading plan sorted today and take charge of delivering your own trading success.  Join our pair trading community!  Learn the power of long/short trading to deliver consistent profits in any market environment. www.pairtradefinder.com

Trading Success 101

Learn Our Recipe for Trading Success Today

Sign up for our free 30-Minute Webinar Trade Like a Hedge Fund to take a deeper dive into the oldest and arguably most successful hedge fund trading strategy.  Once you join our Webinar we will send you our free eBook with 11 Lessons from Pro pair traders. 

Read More →

Trade of the Month May 2019: PPBI v WAL

Pacific Premier Bancorp (PPBI:Nasdaq) vs. Western Alliance Bancorporation (WAL:NYSE)

Watch our trade analysis below:

Trade pairs safely and easily

Here at PairTrade Finder® we look to trade pairs with high cointegration, correlation and win rate.

This great stock pair, PPBI/WAL, is part of our Top 30 US Equities Pairs.  In backtesting, it produced 10 trades with a 90% Win Rate over the past 2 years.  That result equates to a Total Gross Profit of $4,788, an average win of $435/trade and a 17.4% CAGR (unlevered).  What’s more, these results were delivered with only a 9.1% Max Drawdown*.  

Read More →

PairTrade Finder® Mini Educational Series: Lesson Two

Here is the second lesson in our 3-part mini Pair Trading Educational Series.  Together with our eBook Trade Like a Hedge Fund, these lessons should help you rapidly choose profitable pair trading signals from PairTrade Finder® PRO.

Happy Trading!

Pair Trading Educational Series: Lesson Two

It’s true that the largest hedge fund in the world uses pair trading. Jim Simons of Renaissance Technologies confessed to Congress In November 2008 he pair trades stocks. Jim actually worked for the CIA back in the 1960’s cracking code.  He is also a PhD in maths and the 55th richest person in the world as ranked by Forbes.

Read More →

Pair Trading Mini Educational Series: Lesson One

Today, we are sending you the first lesson in our 3-part mini Pair Trading Educational Series.  Together with our eBook Trade Like a Hedge Fund, these lessons should rapidly help you to choose profitable pair trading signals from PairTrade Finder® PRO for your portfolio.

Pair Trading Educational Series: Lesson 1

Contrary to popular belief, the market has logic to it. The market is efficient most of the time, which is stocks are priced accurately according to all the known and forecast information.

The truest logic running through markets is that of relative value;

Read More →