If you are looking for how to succeed at trading, we suggest you look no further. In the words of one of the robust recent research studies on pair trading:
“We test an equity pairs trading strategy that uses historical return correlations to determine pairs. We find that a trading strategy that bets on this convergence generates…alphas of up to 36% annually for an equal-weighted portfolio.”
Empirical Investigation of an Equity Pairs Trading Strategy, Huafeng Chen, Shaojun Chen, Feng Li, September 2012
- Seek consistent profits regardless of market direction (Bull market?
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