Tag Archives: Pair Trading Strategy

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.

best trading strategy

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. 

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The Stock Pair Trading Strategy and the Secret of Cointegration

Learn one of the best-kept hedge fund secrets for deploying the stock pair trading strategy – cointegration.  Used by professionals for over 50 years to deliver consistent monthly profits from stock trading, regardless of market direction. It also carries the additional benefit of protection from market crashes and big account drawdowns through the use of hedging.

Click here to watch our video that explains it all:

stock pair trading strategy

Combining Cointegration and Stock Pair Trading for a Winning Combination

Professional traders and hedge fund managers love to use the stock pair trading strategy.  

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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:

equities pair trade of the month

Learn Equities Pair Trading with PairTrade Finder® PRO
  • 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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TOP TRADE SEPTEMBER 2019: AIMC v. TKR

Altra Industrial Motion Corp. (AIMC:NASDAQ)  vs. The Timken Company (TKR:NYSE)
  • Entry Trading Signal of 25/7/2019, Exit Trading Signal 24/9/2019
  • $474 in 40 Market Days
  • 19% Return on Margin

(based on $10,000/leg and 4:1 CFD margin)

PLAY VIDEO ANALYSIS:

pair trading signal Learn to Pair Trade Stocks with PairTrade Finder® PRO
  • Seek consistent profits regardless of market direction (Bull market? Bear market? Sideways?  It doesn’t matter with pair trading)
  • Use hedged positions to protect from a market crash (you are long and short correlated stocks in equal measure)
  • Create,
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Pair Trading Stocks: Monday Morning Thoughts for Inspiration

PairTrade Finder® PRO is the industry-leading software for pair trading stocks, having been downloaded more than 6,000 times and selling over 2,000 licenses worldwide. Created over more than ten years by a team of developers and finance professionals formerly with Morgan Stanley, Salomon Brothers Inc and GE Capital, it is a truly global platform like no other.

Pair Trading Stocks for Recurring Income

What and Where Can It Trade?

Our pair trading software is designed with online traders in mind.  PairTrade Finder® PRO works, is easy to learn and use, and comes out-of-the-box with free delayed Yahoo Finance stock data. 

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Pair Trade Stocks: Monday Morning Thoughts on Learning

Learn how to pair trade stocks like a professional hedge fund manager.  Get our full suite of educational tools today for FREE.  Sign up for our list and receive:

  1. Our eBook Trade Like a Hedge Fund
  2. Our 30-minute Webinar
  3. A 15 Day Trial of our platform (no payment required), and
  4. Our 3 Hour Video Training Course

all for FREE, today, just by joining our mailing list (see sidebar).

PairTrade Finder® PRO is integrated with Interactive Brokers for Real Time Data on 100 markets at no extra cost,

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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*.  

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PairTrade Finder® Mini Educational Series: Learn to Pair Trade, Lesson Three

Today, we are sending you the third and final lesson in our 3-part PairTrade Finder® Mini Educational Series.

Remember, in backtesting, the average profit per trade for our Top 30 US Equities Pairs is over $600 and win rates are in excess of 75%. Just one successful trade can cover your entire annual subscription fee.  Join our Free Webinar to learn more.

Happy Trading!
The PairTrade Finder® Team

Pair Trading Educational Series: Lesson 3

“Quants” is the name Wall Street uses for market researchers who use quantitative analysis to develop profitable trading strategies.

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