Building a trading strategy is inseparable from analyzing the market situation and forecasting the most likely movement of a financial instrument. This movement often correlated with other financial assets and macroeconomic indicators. This can be compared with the movement of transport, where each vehicle follows its own individual destination. However, their actions on the road are interconnected to a certain extent and are strictly regulated by traffic rules. Also, due to the individual perception ...
Currently, there are a huge number of trading strategies for every taste. All these strategies are aimed at making a profit. But making a profit is in one way or another connected with the risks - the greater the expected profit, the higher the risks. A logical question arises: is it possible to reduce trading risks to a minimum, while receiving small but stable profits? These conditions are met by pair trading. Pair trading is a variery of statistical arbitrage first proposed ...