These Pair Trading Signals are specifically meant for pair trading also known as the long/short trading, market neutral, statistical arbitrage, relative value trading etc. So, if you are interested in pair trading different instruments, you can try this Pair Trading Signals Service. You might ask what is pair trading? So, let us first explain to you what is meant by pair trading and why it is the most popular strategy used by the hedge funds.
What is Pair Trading?
Pair trading is done when you are long and short two almost similar instruments. This simultaneous long and short positions on two similar instruments hedges the portfolio risk while at the same time makes the trade almost market independent as the upside risk cancels the downside risk. An example can be taking a long position on Coca Cola (KO) and a short position in Pepsi (PEP). Both Coca Cola and Pepsi are beverages companies that offer almost similar cold drinks. The performance of both these companies is supposed to be correlated as both are doing business in the same market sector with almost similar products. So, by taking a long position in one stock and a short in another is going to cancel the risk to almost zero and make the trade independent of the market direction.
Testing The Pair Trading Signals
This is perhaps the only real time pair trading signals service for stocks, ETFs and forex traders. You will get trading signals on the correlated forex, stocks or ETF pair between 2:30 PM EST to 4:00 PM EST during the last 90 minutes of trading on the NYSE. The signals are real time and are based on a proven and tested pair trading system developed by Jared Mann who is an experienced trader and has been a former investment bank member. First, you should take a detailed look at the 2 year track record of these signals. These signals have a winning percentage of 68.49%. So, if you are only going to trade forex pairs, you can test the signals on the demo account and if you are interested in trading stocks and ETF pairs as well, you can keep a trading journal and paper trade with these Pair Trading Signals!