Author Archives: Pairtrade Finder

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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Correlated Stock Pair FORD v. GOODYEAR: Wild Card! March Trade of the Month

$796 in 8 Market Days on $2,000 Margin. 40% Return!

We are highlighting a member of our new FAST 50 U.S. Equities Pairs launched in February 2022 as our correlated stock pair trade of the month for March.Ford Motor Company (NYSE: F) vs.The Goodyear Tire & Rubber Company (Nasdaq: GT). The latest live trade called on 7 March 2022 didn’t disappoint, delivering $796 Net Profit and a 40% return on margin in 8days, based on $5,000/leg position size.

Video: Pair Trade of the Month March 2022

Finding a Correlated Stock Pair to Trade: Backtesting with PairTrade Finder® PRO

Welcome to the Wild Card!

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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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Cointegrated Stock Pairs: Top 30 August Vintage Post a Perfect Record in First Three Weeks of Live Trading Out-of-Sample

Cointegrated stock pairs

Pair Trading stocks involves simultaneously entering LONG (i.e. BUYING) and entering SHORT (i.e. SELLING) two “paired” stocks.  It has been shown to provide protection from market crashes, controlled risk, low correlation to the market averages and ability to generate significant and consistent returns.  Multiple recent research studies have demonstrated returns to be in the range of 2%-4% per month*, on a 4:1 leverage basis, over more than a decade.  Add in the use of Cointegrated Stock Pairs and the historical returns look even stronger**.

PairTrade Finder® PRO’s Top 30 Cointegrated Stock Pairs

But we prefer to put our money where our mouth is. 

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Best Stock Pairs: PTF PRO Trade of the Month Aug 2020

KB Financial Group vs. Sumitomo Mitsui Financial Group $926 in 5 Market Days ($10,000/leg) 23% Return on Margin (5:1 CFD leverage) Looking for the best stock pairs to trade? Subscribe to PairTrade Finder PRO v2 and our curated Top 30 U.S. Equities Pairs. Start a free trial of our software platform and you will receive a 3-Hour Video Training Course taught by a professional pair trader for free. Video: Trade of the Month August 2020 Best Stock Pairs Backtest Results of KB/SMFG One of Our Best Stock Pairs:

In backtesting over the three years prior to 1 April 2020,

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Stock Pair Trading System: Use It to Profit In Uncertain Times

Life Interrupted?

The recent life interruptions occurring for millions of people worldwide have left many at-home with too much free time.  Are you wondering how to re-deploy your time and energy to meet your personal and financial goals?  Is one of your goals is to develop a second or multiple income stream to allow you diversify away from reliance on a job (or a lack thereof)?  If so, we believe we can be of value-add.  Why not take the time with us to learn our acclaimed and proven stock pair trading system?

stock pair trading system

Our Stock Pair Trading System The stock pair trading system embedded in PairTrade Finder® PRO allows retail traders to easily learn and use a proven hedge fund strategy.  Read More →

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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Stock Pair Trading Through a Market Crash: Generate Consistent Profits

Stock Market Volatility Returns with a Vengeance

Last week in the U.S. Equities indices was certainly the definition of “interesting times”.  The DJIA crashed by over 1,800 points or 6.9% on Thursday, only to recover about 1.9% on Friday.  The S&P 500 behaved similarly.  The NASDAQ was a bit less volatile, but we think it’s saving up for a chance to really out-do the others.  Quite some volatility.  However, for many of our clients, it was an excellent opportunity to generate increased profits by stock pair trading through a market crash.

stock pair trading through a market crash

Market Volatility Has Been Shown to Increase Pair Trading Returns

We predicted this continuing volatility in our earlier blog post in April of this year. 

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Correlated Stock Pair Trade of the Month: April 2020

Eastman Chemical Company (EMN:NYSE) vs. Element Solutions Inc. (ESI:NYSE)

$1,210 in Four Market Days, 30.3% Return on Margin.  Best correlated stock pair trade for the month of April 2020!

ESM and ESI are a correlated stock pair that we selected in late March for inclusion in our latest April Vintage of the Top 30 U.S. Equities Pairs.

Watch our video:

correlated stock pair

Backtest Results of this Correlated Stock Pair:

In backtesting over the three years prior to 1 April 2020, cointegrated and correlated stock pair EMN/ESL delivered 8 closed trades,

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Best Trading Strategy for Lockdown Volatility?

What is the best trading strategy for highly volatile markets?  The results of our Top 30 U.S. Equities Pairs over the last four months would suggest U.S. equities pair trading.  If you had been trading the unfiltered trading signals from our Top 30 U.S. Equities Pairs, as updated, from 12 November 2019 until 1 April 2020, these generated an almost 30% return on account equity.  The S&P 500 returned -19.5%.  That’s almost 50% alpha in 4.5 months.  Detailed results are here and here.

best trading strategy

The results of our research and development to create the Top 30 and to level up the power of our stock pair trading platform PairTrade Finder® PRO are very encouraging. 

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