Pairs trading is when one takes multiple financial positions. A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation (Having a “long” position in a security means that you own the security. Investors maintain “long” security positions in the expectation that the stock will rise in value in the future. ... Investors who sell short believe the price of the stock will decrease in value). What we did here was bounce off all of the data in our product coined 'Investment Lab,' and we find highly statistical correlated pairs that move together. In the event that the correlations break apart, we went long one position, and short another position. We take profit when the values approach two times the average true range (Average True Range (ATR) is a technical indicator measuring market volatility. It is typically derived from the 14-day moving average of a series of true range indicators. It was originally developed for use in commodities markets but has since been applied to all types of securities) is met with a trailing stop loss (A trailing stop loss is a type of day trading order that lets you set a maximum value or percentage of loss you can incur on a trade. If the security price rises or falls in your favor, the stop price moves with it. If the security price rises or falls against you, the stop stays in place).
We found two ticker symbols that made profits every single year, inclusive of financial crashes!
We found two ticker symbols that made profits every single year, inclusive of financial crashes!
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