Trade Example

You can use Pairtrade Finder to scan 1000’s of stocks to find the best pairs to trade. The program will match every possible combination of a pair from the selected stock list and then you can rank the pairs by correlation, number of trades generated or the profit and loss from the programs buy and sell signals. You can easily add those pairs to your watchlist to analyse and receive buy & sell signals. Here is an example of a scan done on technology stocks that are traded on the NYSE & NASDAQ exchanges.

Profit & Loss generated is for one year based on $10,000 invested in each trade.

As you can see above, pairs with high correlations can generate significant profits using the program’s buy & sell signals.

Below are some examples of the trades that have been generated by Pairtrade Finder using the above pairs. User’s received these buy & sell signals during the day.

Results are based on $10,000 invested in each trade.

Trade Example 1:

Pair:                 AAPL / GOOG
Correlation:     90.73%
Signal:             Short APPL / Long GOOG
Length:            3 Days
Profit:              $1,326

Trade Example 2:

Pair:                 LSI / SYMC
Correlation:     86.39%
Signal:             Long LSI / Short SYMC
Length:            6 Days
Profit:              $2,511

Trade Example 3:

Pair:                 MBT / TII
Correlation:     82.24%
Signal:             Short MBT / Long TII
Length:            3 Days
Profit:              $795

Let’s look at the results when you trade a portfolio of pairs over 1 year. We will use the top 20 correlated shares from the above technology scan results.

Results:

Pairs Traded:               20
Trades Taken:             175
Profit:                          $65,699.18

Below is an equity curve starting with a $20,000 trading balance.

*Results derived from a Pairtrade Finder Hypothetical Backtest. Assuming $10,000 invested per trade and leverage used. The positive effects of compounding have not been used. Past performance is no guarantee of future performance.

As you can see trading a portfolio of different pairs will over the course of time shift the odds in your favour.

The more pairs you trade the more consistent & robust your profits become.

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