What can Pair Trading do for You?
Are you tired of trying to guess the market’s direction? Would you like to learn how our professional traders have been consistently taking money out of the market? Are you looking for a new strategy that can make you money and help minimize the risk? Then pair trading may be perfect for you! Our pair trading method opens the door to multi-layered trading strategies, facilitates diversification as you can trade many pairs at a time, and allows you to potentially trade larger. All this helps with a trader's confidence. Whether the market is traveling up or down or sideways, or moving fast or slow, the trader can generate profits from trading the differential of two correlated stocks – any and every day.
When you study the price action of a pair you get very powerful results. Spread trading is trading instruments that are by design quite prone to range bound trading. The chop can be easily recognized, orders enveloped around the bids and asks of the pair stocks to participate in great prints. Also, with predictability increased, the risk is reduced, and the options available to the trader increase. A pair trader actually gets to respond to the action that the market is providing, recognizes patterns and participates in a market neutral manner, not exposed, as you would be by a long position only.
The markets have changed radically in the last two years, becoming largely random with only brief periods of order. Consequently, a trader who focuses on trying to predict the overall market direction or the direction of a single stock is often disappointed. Frequently, the exact opposite outcome of what you think will happen, occurs. Many of the books written during the bubble phase of the market in the 90's focus on trading momentum during volatility and predictable order flow, and offer little help in consistently extracting profits in the current market climate.
The information and tools within this site are relevant and helpful to today's market conditions. Some tools have worked for professional traders since the inception of the markets and will continue to work well into the future.