How does PTF works?

Overview: How PairTrade Finder® Works

With regard to whether PairTrade Finder® Ultimate Alpha 3.0 works, you can demo it for 15 days for FREE to experience the results for yourself. After that, you will be charged for your subscription, though you have a further 15 days in which you may cancel and receive a refund, less a 10% administration fee.  This fee allows us to provide a money-back guarantee, covers non-refundable PayPal fees, and helps to prevent serial free trial abuse.


The owners of PairTrade Finder® use the program and find that it works and that yes one can make money with it, but you do have to spend time learning just like with everything else. You can see our unsolicited client testimonials on our main website at www.pairtradefinder.com.


As to what % you can earn from trading using it, that is a question that depends on risk-reward, entry and exit stretch levels, hedging levels, position sizing and many other factors. ‎We are not a training company and we are not regulated to offer investment advice so we have to suggest that you explore other sources for an answer on that question.


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PTF  Top USA Stock Pair Stars (www.pairtradefinder.com/autoload.html) are typically configured to generate a signal when a pair is 2.70 (a entry level which can be configured, refer to User Manual) standard deviations away from the Simple Moving Average of the Core Ratio (right price/(left price + right price)) of the prices of the two stocks.  PTF allows you to configure the lookback period of this moving average of the Core Ratio, then measures the day to day change in the Core Ratio. When the current day Core Ratio moves at least 2.70 standard deviations away from the 100 day moving average (days lookback are configurable) a signal is generated. When the ratio moves back within 1.00 standard deviations of the moving average an exit signal is generated.  You can change these entry and exit standard deviation from the mean parameters in PTF Ultimate Alpha 3.0. It may be helpful if you start paper trading PTF UA3 on some USA pairs, or our Top USA Stock Pair Stars so you get a feel for pair trading in general. 


Regarding the performance of a "standard" pair trading strategy under various backtested parameters, Saxo Bank produced an interesting paper in this regard you may wish to review here to get some ideas:


We would highlight that the analyses done in that article do not include many of the settings and strategies typically used by PTF UA3 traders.