Five-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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