In backtesting over the three years prior to 24 August 2020,
… Read More →Tag Archives: Pair Trading Software
EXAMPLE PAIR TRADE OF THE MONTH SEPT 2020
LCI Industries Inc. (LCII:NYSE) vs. Polaris Inc. (PII:NYSE)
September was a good month for the signals generated by the August 2020 Vintage of our Top 30. As an example pair trade, we want to drill down on a pair that has consistently delivered profitable trades over the last year, that of LCI Industries Inc. (LCII:NYSE) vs. Polaris Inc. (PII:NYSE). The latest trade called on the pair didn’t disappoint, delivering $578 Net Profit and a 15% return on margin in 4 days. Here is a detailed trade entry and exit analysis for this example pair trade:
Video: Pair Trade of the Month Sept 2020
Cointegrated Stock Pairs: Top 30 August Vintage Post a Perfect Record in First Three Weeks of Live Trading Out-of-Sample
Pair Trading stocks involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” stocks. It has been shown to provide protection from market crashes, controlled risk, low correlation to the market averages and ability to generate significant and consistent returns. Multiple recent research studies have demonstrated returns to be in the range of 2%-4% per month*, on a 4:1 leverage basis, over more than a decade. Add in the use of Cointegrated Stock Pairs and the historical returns look even stronger**.
PairTrade Finder® PRO’s Top 30 Cointegrated Stock PairsBut we prefer to put our money where our mouth is.
… Read More →Stock Pair Trading System: Use It to Profit In Uncertain Times
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The recent life interruptions occurring for millions of people worldwide have left many at-home with too much free time. Are you wondering how to re-deploy your time and energy to meet your personal and financial goals? Is one of your goals is to develop a second or multiple income stream to allow you diversify away from reliance on a job (or a lack thereof)? If so, we believe we can be of value-add. Why not take the time with us to learn our acclaimed and proven stock pair trading system?
Stock Pair Trading Through a Market Crash: Generate Consistent Profits
Stock Market Volatility Returns with a Vengeance
Last week in the U.S. Equities indices was certainly the definition of “interesting times”. The DJIA crashed by over 1,800 points or 6.9% on Thursday, only to recover about 1.9% on Friday. The S&P 500 behaved similarly. The NASDAQ was a bit less volatile, but we think it’s saving up for a chance to really out-do the others. Quite some volatility. However, for many of our clients, it was an excellent opportunity to generate increased profits by stock pair trading through a market crash.
We predicted this continuing volatility in our earlier blog post in April of this year.
… Read More →Best Trading Strategy for Lockdown Volatility?
What is the best trading strategy for highly volatile markets? The results of our Top 30 U.S. Equities Pairs over the last four months would suggest U.S. equities pair trading. If you had been trading the unfiltered trading signals from our Top 30 U.S. Equities Pairs, as updated, from 12 November 2019 until 1 April 2020, these generated an almost 30% return on account equity. The S&P 500 returned -19.5%. That’s almost 50% alpha in 4.5 months. Detailed results are here and here.
The results of our research and development to create the Top 30 and to level up the power of our stock pair trading platform PairTrade Finder® PRO are very encouraging.
… Read More →Best Pair Trade of the Month: March 2020
Avis Budget Group Inc. (CAR:NASDAQ) vs. United Rentals Inc. (URI:NYSE)
$6,983 in 3 Market Days, 175% Return on Margin. Best pair trade for the month of March 2020!
We selected CAR/URI to form part of our updated Top 30 U.S. Equities Pairs for the 1 March 2020 vintage.
In backtesting over the three years prior to 1 March 2020, cointegrated and correlated stock pair CAR/URI delivered 5 closed trades, a 100% win rate, an average net profit per trade of $906, and over $4,700 in total profits:
In actual trading,
… 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.
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 →Pair Trading Results: Trade of the Month November 2019
PairTrade Finder® PRO Top 30 US Equities Pairs
Fair Isaac Corporation (FICO:NYSE) vs. Q2 Holdings Inc. (QTWO:NYSE)
Entry on 5 November 2019 at +2.65 sd. Exit on 20 November 2019 at +0.57 sd.
$1,107 in 16 Days
28% Return on Margin
(based on $10,000/leg and 5:1 CFD leverage)
WATCH OUR EQUITIES PAIR TRADE VIDEO:
With PairTrade Finder® PRO, we promise to help make you a consistently profitable equity pairs trader within 30 days.
… Read More →How a Stock Trading System Costing Under $2/Day Can Help Deliver Consistent Profits
PairTrade Finder® PRO, our acclaimed pairs trading software platform, encapsulates a stock trading system refined over more than 10 years. We employ a hedge fund trading strategy that has been empirically demonstrated to be highly profitable over multi-decades on the S&P 500 (1), delivering between 1%-5% per month over the market return over more than 10 years.
Stock trading systems are useful to keep your emotions out of your buy and sell decisions. And the trading legends will agree:
(Linda Bradford Raschke began her professional trading career in 1981 making markets in options as a member of two exchanges.
… Read More →Equities Pair Trade of the Month: October 2019
PairTrade Finder® PRO Top 30 US Equities Pairs
Alliance Resource Partners LP vs. Cleveland-Cliffs Inc.
Entry on 3 Sept 2019 at 3.22 sd. Exit on 28 Oct 2019 at -0.01 sd.
$2,205 in 56 Days
55% Return on Margin
(based on $10,000/leg and 5:1 CFD leverage)
WATCH OUR EQUITIES PAIR TRADE VIDEO:
- Seek consistent profits regardless of market direction
- Use hedged positions to protect from a market crash (you are long and short correlated stocks in equal measure)
- Create,
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