Automatic Trading Strategies: Basics of Pairs Trading Part 1 - Stock Pair Trading
#Pair trading - buying and selling a hedged stock pair at the same time, buying the weaker stock and selling the stronger stock at the same time (#short selling). This market-neutral trading approach is based on the principles of statistical#arbitrage. Dr. Daniel Sinnig explains how this trading style works in this introductory video, Part 1. Part 2 will follow on April 7, 2020, at 6 p.m. live at CapTrader (free registration below under Dates).
Further links:
Live account with CapTrader: https://goo.gl/zW8oA7
Demo account with CapTrader: https://goo.gl/X6eWSf
Newsletter: https://bit.ly/31Ap3h8
All dates at CapTrader: https://goo.gl/6MgBGc
Topics covered in this video include:
04:00 Who are we?
05:15 What is meant by pairs trading? Example O'Reilly Automotive vs. Harley-Davidson
09:52 Example in the chart and profit calculation in #MotivWave
17:45 Built-in stop loss and take profit in strategy
21:58 Second example Morgan Stanley and FITB Fifth Third Bankcorp
29:35 Principles of pairs trading
30:33 #Correlation vs #Cointegration
33:10 #Spread and #HedgeRatio
34:58 Co-integration and stationarity
36:12 Z-score as standard deviation (spread-average spread)
37:21 Trading approach
42:40 Finding interesting co-integrated pairs (outlook for part 2 of the series, scanner) and examples of trading ideas
Appointments at CapTrader:
10.03.2020 | 11 AM | Stock Market Weekly Outlook - Analyses and Trading Strategies
➡️Anmeldung: https://bit.ly/2Tm5LLb
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10.03.2020 | 6 PM | André Stagge - Market Outlook with Trading and Investment Ideas from a Portfolio Manager
➡️Anmeldung: https://bit.ly/3bg3Kan
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11.03.2020 | 6 p.m. | Options markets at a glance - opportunities and risks for option writers with Eichhorn Coaching
➡️Anmeldung: https://bit.ly/36X0v4f
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15.03.2020 | 11 a.m. | Seminar TWS Trader Workstation intensive workshop in Düsseldorf
➡️Anmeldung: https://tws-seminar.captrader.com/
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March 17, 2020 | 11 AM | Stock Market Weekly Outlook - Analyses and Trading Strategies
➡️Anmeldung: https://bit.ly/2Tm5LLb
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18.03.2020 | 6 pm | AgenaTrader: How do I build my optimal trading signal?
➡️Anmeldung: https://bit.ly/2ukrfOC
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03/19/2020 | 6 PM | CapTrader Helpdesk - Your Questions About Trading at CapTrader
➡️Anmeldung: https://bit.ly/2PMXVrS
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03/24/2020 | 6 PM | Luis Pazos - Investing in Business Development Companies (BDCs)
➡️Anmeldung: https://bit.ly/2wt7YLW
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03/27/2020 | 6 PM | Christian W. Röhl Seminar in Munich - Investing systematically with stocks and ETFs
➡️Anmeldung: https://muenchen.captrader.com/
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28.03.2020 | 09 a.m. | CapTrader at the Munich Stock Exchange Day
➡️Anmeldung: https://www.boersentag-muenchen.de/home/
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07.04.2020 | 6 pm | Automatic trading strategies - basics of pairs trading part 2
➡️Anmeldung: https://bit.ly/2ToKYXo
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