Tag Archives: How To Pair Trade

Our 2024 Power Picks: Top 60 U.S. Stock Pair Stars for Our January Vintage

Latest 12 Months’ Backtest Results and Returns Analysis

Elevate your stock pair trading game with PairTrade Finder®’s JANUARY 2024 TOP 60 U.S. STOCK PAIR STARS! Crafted from our relentless research and hours of grinding, this January Vintage isn’t just an addition—it’s THE game-changing weapon you need in your trading war chest. Why settle for average when you can dominate?

Curated Stock Pairs for High-Probability Pair Trading Signals

Stock selection universe, backtest parameters and pair selection filters can be found in detail here.

All paid-up subscribers can autoload these stock pairs into their Watchlists for free. These pairs will then immediately begin calling high-probability pair trading signals you can analyse and trade as you see fit.

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Revealed: Top Settings for Peak Stock Pair Returns!

You want to level up? If you’ve already conquered the essentials of our powerhouse platform, PairTrade Finder® PRO V2, get ready to turbocharge your strategy! Let’s crush those amateur numbers and go PRO.

Pedro Alonso’s got the playbook for you in our latest “Trade of the Month” video. Forget about just one trade – Pedro’s diving deep, putting 250 pairs from his own proprietary database to the test over 27 months. What settings are your money-makers? Let’s find out.

He’s dissecting every little detail – Entry Stretch, RSI Filter settings, and the full arsenal of PairTrade Finder® PRO V2.

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EXPLODE Your Profits: How Our FAST 50 U.S Equities Pairs Are Crushing It!

🔥 BOOM! 8 Weeks In & We’re Up +5.5% Per Month! That’s MASSIVE +4.8% p.m. Alpha! 🔥

Hey there, rockstar trader,

Did you hear? Our FAST 50 U.S. Equities Pairs live signals are on FIRE! If you’re out of the loop on the FAST 50 magic, stop missing out! Click here to dive into our intro video.

Let’s break it down:

  • Launch Date: 19 June 2023
  • Total Weeks Trading: 8

Here’s your golden nugget for the week ending 11 August:

Stock Pair Trading Signals, Read More →

Unleashing the Power of Equities Pair Trading: Exploring Cointegration and Expected Returns

In the world of trading, where opportunities and pitfalls abound, equities pair trading stands out as a strategy that offers unique advantages. For intermediate-level traders with a solid understanding of trading and basic mathematics, employing the cointegration method in stock pair trading can unlock a world of potential gains. In this article, we delve into the benefits of equities pair trading using the cointegration method and explore the likely expected trading returns based on the latest academic research focused on S&P 500 stocks.

Understanding Equities Pair Trading

Equities pair trading involves selecting two correlated stocks and taking positions based on the historical relationship between their prices.

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Pair Trading for Income: Live Signal Results!

FEBRUARY VINTAGE FAST 50 U.S. EQUITIES PAIRS LIVE SIGNALS TWO MONTHS PERFORMANCE RESULTS +11.1% in two months, equates to +5.4% per month Lessons in Lifestyle Design: Learn Pair Trading for Income, in Under 1 Hour per Day

Don’t want to read? Watch our VIDEO HERE:

Pair Trading, which you may or may not know, involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” securities.

It provides protection from market crashes, controlled risk, low correlation to the market averages and ability to generate significant income and consistent returns.

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November Pair Trade of the Month

A Lesson in Trade Management Techniques CRM vs. NUAN $497 Profit in 5 Market Days or -$385 Loss in 40 Days…

($10,000/leg)

Watch this short video in pair trade management techniques that highlights how applying a trailing stop or trade-to-target approach to your pair trading signals can significantly impact your profit and loss account consistency:

trade management techniques

A key element to your trading plan is the application of trade management techniques, which are critical, but before you can manage a trade you need high-probability trading signals to analyse and decide whether to execute. 

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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

example pair trade

Backtest Results:

In backtesting over the three years prior to 24 August 2020,

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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,

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US Stock Pair Trading Profitability: 16.1% in 3 Months. Out-of-Sample Results Meet Expectations

Here at PairTrade Finder® we receive constant requests from customers and potential customers to demonstrate the actual pair trading profitability of US stocks using the PairTrade Finder® PRO system.  Is it profitable and, if so, how profitable?  Can it be used as a new career?  Can it have a significant impact on the lives of its practitioners?

Pair Trading Profitability Track Record

We don’t publish a real money track record.  Nor do we make any promises about your potential returns from pair trading.

However, we are able to show you out-of-sample results for our Top 30 US Equities Pairs released on 12 Nov 2019 until 15 February 2020 as an actual recent example. 

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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.

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