Tag Archives: How To Pair Trade

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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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. 

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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.

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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;

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