Tag Archives: Pair Trading Strategies

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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Learn to Trade Stock Pairs: Monday Morning Thoughts for Inspiration

Exhaustive and robust academic research of stock pair trading strategies on the S&P 500 show consistent trading gains.  Stock pair trading, especially using cointegration for selecting pairs, has shown historic profitability of up to 5% per month.  Learn to trade stock pairs in our 30 Minute Webinar.  Sign up for a 15-Day Free Trial and get our eBook Trade Like a Hedge Fund for free.

Learn to Trade Stock Pairs Today!

Free triallers also receive access to our Pair Trading Video Training Course.  Taught by a professional pair trader, this series presents pair trading in simple,

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