Tag Archives: Pair Trading

1-on-1 Pair Trading Coaching: Big Changes Coming to PairTrade Finder® this Autumn

Announcement: 1-on-1 coaching coming to PairTrade Finder

In two weeks, we launch the biggest upgrade to PairTrade Finder® membership since Ultimate Alpha 3 itself.

For years, you’ve asked for three things: more flexibility in how you pay, more depth in what we offer, and direct access to professional guidance. All three are coming.

It follows the strongest year of evidence in our history — our 2025 live paper-trading test returned +17.4% vs the S&P 500’s +10.8%, with a maximum drawdown of just −3.6% against the index’s −18.8%.* Get the full month-by-month record in the free white paper (signup box on this page).

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Protecting Trading Profits: What to Do When You’re Well Ahead of Target

Protecting trading profits

Picture the situation. You are a pair trader with a 2% monthly target, roughly 25% a year. You have just posted three months in a row above +4%. It is August. You sit at +27% for the year, and you have already cleared your annual goal with four months still to run. So what is the correct course of action? The honest answer starts with a warning. Protecting trading profits at this stage is mostly a test of psychology, not strategy. This moment is more dangerous than it feels.

Being well ahead pulls you two ways at once.

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Swing Trading vs Day Trading: Which Actually Compounds Monthly Returns With Shallow Drawdowns?

And What the Death of the Pattern Day Trader (“PDT”) Rule Means for You day trading vs. swing trading

 Most trading careers don’t end in a dramatic blow-up. They end in attrition: an equity curve that grinds sideways with violent swings, a strong month handed back to one overnight gap, an edge quietly eaten alive by spreads and slippage, and a trader burned out from staring at screens for outcomes that never compound.

If that pattern is familiar, the usual question — “which style suits my personality?” — is the wrong one. That’s the amateur’s question. The professional question is colder: which trading style is structurally built to deliver a compounding monthly return,

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Trading for Beginners: How to Start Without Getting Wiped Out by the Next Bear Market

Trading for beginners

 

Between 2020 and 2024, the number of UK adults using an investment platform jumped from 4.4 million to 7.9 million — an 80% leap in just four years (Investment Trends / FCA data). At the same time, mandatory FCA risk disclosures show that 71% to 79% of retail CFD traders lose money at the UK’s largest brokers (IG 71%, CMC 76%, eToro 77%, Plus500 79%).

Two numbers, one uncomfortable question for anyone asking how to get into trading: if so many people are piling in, why are so many losing — and what are the survivors doing differently?

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Market-Neutral Pair Trading in Action: May 2026 Top 50 USA Stock Pair Stars

market-neutral pair trading

Most retail trading strategies depend on direction — and direction is the one thing nobody can predict consistently. By contrast, market-neutral pair trading offers an alternative: trades constructed not on whether a market rises or falls, but on the relationship between two fundamentally related assets. As a result, when that relationship temporarily diverges, mean reversion offers a measurable, repeatable edge.

Your Shortcut to Market-Neutral Pair Trading Success

This May, after another quarter of research, recalibration, and statistical validation, we are releasing the May 2026 Vintage of our Top 50 USA Stock Pair Stars.

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What Is Automated Trading? A Simple Introduction to Systems, Strategies & AI

automated trading

As CEO of Equilibria Technologies Ltd., the publisher of PairTrade Finder® software, I’ve spent the last decade helping traders move from manual screen-watching to professional-grade automated trading.

The software was originally created by Jared Mann in Sydney, Australia back in 2008 as a pure statistical-arbitrage tool for serious pairs traders. What started as one man’s code in a Sydney apartment has grown into a complete platform that thousands of traders and institutions have and continue to rely on every day.

So what exactly is automated trading? In plain English, it’s the use of computer programs to execute trades based on rules you define upfront.

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OU Half-Life Filter for Pair Trading

Faster Reversion = Better Profits in PairTrade Finder® UA3

One of the biggest hidden risks in pair trading isn’t finding a cointegrated relationship. It’s trading a pair that reverts too slowly to be profitable before costs, time decay, or market drift eat your edge.

That’s exactly why we’re adding the OU Half-Life Filter to PairTrade Finder® Ultimate Alpha 3. It’s a simple, powerful new layer that tells you how fast a spread will snap back — so you only trade the pairs that can actually make money in real-market conditions.

OU Half-Life Filtering in Pair Trading

Why Many Pairs Fail in Live Trading (Even If They Pass Backtests)

You run the scanner.

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Beating the S&P 500 Without Market Direction: Inside Equity Market Neutral Trading

Most traders intuitively understand that returns mean very little without context. What ultimately matters is how those returns are generated, the drawdowns required to earn them, and whether the strategy survives hostile market environments.

That is precisely why equity market neutral (EMN) trading strategies have been a core allocation for institutional capital for decades—and why they are now becoming accessible to sophisticated retail traders.

In this post, we’ll walk through a real institutional dataset, compare it directly to the S&P 500, and then run a simple but powerful thought experiment: what happens if a retail trader applies modest leverage—available today at Interactive Brokers—to an institutional EMN return stream?

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How to Avoid Poverty In Retirement

The human population has been a young one for most of its history: high fertility rates and short lifespans mean children have accounted for a large share of the population. But the world is ageing: there are now more people older than 64 than younger than 5 years old. This marks a historic demographic change.”

Source:https://ourworldindata.org/population-aged-65-outnumber-children

Avoid Poverty In Retirement

The above thought-provoking article reveals that, as of 2018, the population of human beings who are 65 and older has now surpassed those under 5 for the first time ever.

How the Earth’s Population Is Forecast to Age 

We are entering unknown population dynamics for humanity.

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Find Your Trading Edge: It’s a State of Mind, a System and a Marathon…

Financial Freedom through trading edge

Find Your Trading Edge…

Here at PairTrade Finder® we aim to trade stock, ETF and FX pairs with high cointegration, correlation and historic win rate.  Why?  Because even though a lot of these trades will fail, if you are persistent and disciplined, in the end the edge is with you.

What is “edge”?  You hear traders talk about it all the time.  Here’s an interesting definition from Investopedia’s Alan Farley:

A trading edge is a technique, observation or approach that creates a cash advantage over other market players. It doesn’t have to be elaborate to fulfill its purpose;

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