Tag Archives: Pairtrade Finder

The 3 “Best” Stock Pairs to Trade — That All Lose Money (Tested)

famous stock pairs to trade backtest — KO/PEP, MA/V, TGT/WMT losses vs HGV/MGM winnerFive-year backtest, identical settings: the three textbook pairs all lost; HGV/MGM went nine for nine.

Ask anyone which stock pairs to trade and you’ll hear the same three names: Coke and Pepsi. Visa and Mastercard. Target and Walmart. They’re in every textbook, every YouTube video, every forum thread. Famous companies, obvious rivals, surely perfect pairs.

I ran all three through a five-year backtest last week. Every one of them lost money.

This isn’t a trick. Same settings for every test, disclosed in full below, straight out of our software. And the punchline isn’t that pairs trading doesn’t work.

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Pairs Trading Example: The Vegas Pair That Kept Paying for 5 Years

Want a real pairs trading example instead of theory? Here’s one straight from our platform: Hilton Grand Vacations (HGV) and MGM Resorts (MGM). Two Las Vegas-rooted leisure stocks. One quietly reliable trading relationship.

The numbers: 12 trades, 12 winners

We ran a 5-year end-of-day backtest at $5,000 per leg. The results speak plainly:

  • 12 completed trades — every one profitable
  • Net profit: $3,122 after $258 in commissions
  • Average profit per trade: $260
  • Maximum drawdown: just 4.02%

The equity curve is a staircase, not a rollercoaster.

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