Trading Neutrality: Understanding Beta Neutral and Dollar Neutral in PairTrade Finder®
PTF is dollar neutral as we've found in our testing that being dollar neutral is more profitable.
Trading dollar neutral has nothing to do with the spread, buying 10k long and selling 10k short is computed by 10k / share price = qty of shares to trade, PTF computes signals based on the standard deviation from the mean based on the ratio of stock1/stock2, the spread chart in the pair charts window is a simple stockprice1-stockprice2.