Introduction Our article today will deal with the issue of historical data. It is a rather extensive topic that concerns not only stock pair traders, but all traders in general – from stock to futures, options, and forex. Poor data can have a significant impact on back-test results and ultimately result in unpleasant losses. Sources…
In previous articles in this series, we introduced the Stock Pair Builder program for back-testing pairs and for putting together a trading portfolio. Today, we will take a look at how to trade a portfolio. The Stock Pair Trader, second from the StockPairTrading package of programs, is used for trading stock pairs. The Trader and the Builder form…
Putting together a profitable stock pair portfolio In our previous article, we started to introduce the Stock Pair Builder program. We showed how to look for stock pairs suitable for trading and introduced basic tools for back-testing one stock pair. In this article, we will focus on back-testing stock pair portfolios. We will learn how…
In the introductory articles of this series, we presented pair stock trading. If you have read our previous article, you know how interesting a portfolio comprising several dozen stock pairs can be. In this article, we will tell you how to find suitable pairs and how to make a portfolio of trading from them. Computational…
Introduction In previous articles in this series, we became acquainted with the nature of stock pair trading (link and link). We have learned that some 60 – 65% of transactions are profitable and that thanks to the number of trading opportunities, a trading portfolio with a 95% or even 99% likelihood of profit can be…
Introduction We explained in our previous article that today, stock pairs constitute an integral part of the trading strategy of all professional traders, banks, and investment funds. That strategies use different ways to identify trading opportunities by monitoring the difference in the prices of two stock titles. We have also shown that we do not…
Introduction Trading on stock exchanges around the world is one of the most profitable and “sexiest” enterprises one can come across. It does not require any employees, office, or customers. In business terms, relatively low capital is required for the start, and it can be quickly converted into real riches. Who would not want to…
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