Tag Archives: Pair Trading Education

Finding the Most Profitable Settings to Pair Trade Stocks

September 25, 2023 10:04 am |

For those of you that have mastered the basics of using our award-winning platform PairTrade Finder® PRO V2, here’s a new exercise. What are the most profitable settings to pair trade?

Watch this great video prepared by Pedro Alonso as the August Trade of the Month entry. Instead of one trade, he compares all trades on his proprietary database of 250 pairs over a 27-month period using different settings. He sensitizes for Entry Stretch and uses the RSI Filter capability of PairTrade Finder® PRO V2. He then choses his preferred most profitable settings to pair trade these stocks AND examines the capital required and the Risk per Trade they imply.

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Pair Trading Software: A Smart Way to Trade Stocks

August 15, 2023 8:23 am |
If you are looking for a stock trading strategy that can reduce your risk, increase your returns, and take advantage of market inefficiencies, why not consider pair trading? … Read More →

LIVE SIGNALS RESULTS: June Vintage FAST 50 U.S Equities Pairs, Week 8

August 14, 2023 10:15 am |
First 8 Weeks of Trading Deliver +5.5% per month, equals +4.8% p.m. Alpha Generated

Another great week for our FAST 50 U.S. Equities Pairs live signals results!

Don’t know what our FAST 50 are all about? Watch our intro video to them here.

The June Vintage launched on 19 June 2023, this is the eighth full week of trading. Here are the exits for week ending 11 August EOD:

Stock Pair Trading Signals, Exits, Trading Week Ending 11 August 2023

Six exits, five winners, total net profit for the week of $2,254, 

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

June 8, 2023 12:23 pm |

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 Trade Money Management

May 15, 2023 10:00 am |
“Dog” of the Month April 2023: AXTA vs. NVGT Use Money Mgmt to Turn a -$703 Loss to Profit

For any good trading system, money management is a critical component to overlay. We refer to position sizing and trade management as “Money Management”.

April’s Trade of the Month barked and bit – like a badly behaved dog to be fair. However – if you are using prudent pair trade money management techniques – you can force a scary Cerberus back into his cage and turn this losing trade into a winner! Watch as professional pair trader Pedro Alonso takes you through what you need to know in this great VIDEO HERE:

See Pair Trade Money Management Techniques in Action

Learn Pair Trade Money Management Techniques Using Our FAST 50 Cointegrated U.S. … Read More →

Pair Trading Help: Trade of the Month June 2020

June 30, 2020 1:35 pm |
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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Top Pair Trade of the Month: February 2020

March 20, 2020 9:12 am |
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. Top Pair Trade

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. 

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Stock Trading Strategies: Long-Only Has Been Amazing…BUT

November 28, 2019 8:41 am |
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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Find Your Trading Edge: It’s a State of Mind, a System and a Marathon…

September 18, 2019 9:23 am |

Financial Freedom through trading edge

Find Your Trading Edge…

Here at PairTrade Finder® we aim to trade stock, ETF and FX pairs with high cointegration, correlation and historic win rate.  Why?  Because even though a lot of these trades will fail, if you are persistent and disciplined, in the end the edge is with you.

What is “edge”?  You hear traders talk about it all the time.  Here’s an interesting definition from Investopedia’s Alan Farley:

A trading edge is a technique, observation or approach that creates a cash advantage over other market players. It doesn’t have to be elaborate to fulfill its purpose;

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Trading Success: Leverage Our Platform for Consistent Pair Trading Profits

September 9, 2019 3:24 pm |

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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