What is a realistic win rate and how much can an average trader expect to make in a day?
PTF PRO is designed for EOD trading, not intraday, though Entry and Exit signals are generated in real-time throughout the day
If you watch our Webinar (signup at www.pairtradefinder.com), you can see that there is substantial research that backs up about 2-4% per month from pairs trading, more if leverage is employed and results hold. So for every $10,000 in account equity, that would equate to $200-$400/month based on the returns outlined in the research. Average trade duration is usually about 10 days. Win rate depends on each pair for which you backtest! In general our out-of-sample (live trading signals) usually display a win rate in excess of 67%+.
Here are some links to blog posts that analyse the out-of-sample results of the trading signals on our Top 30 U.S. Equities Pairs or our FAST 50 U.S. Equities Pairs:
Day trading with PTF
PTF is not designed for intraday trading. It is designed for swing trading pairs and a holding between 1 to 3 weeks minimum. PTF PRO does update all prices intraday, however, either real-time or delayed depending on the datafeed in use (currently we ...
Assuming an hour per day is spent just mining pairs, is there a typical number of high quality pairs that can be mined from US equities in an average quarter?
GOOD QUESTION. TOO MANY VARIABLES TO ANSWER. DO YOU USE $3BLN+ EQUITIES IN SAME INDUSTRY SECTOR ONLY? SMALLER CAPS? CROSS SECTOR PAIRS? ETFS? FUTURES? FX? NON-US EXCHANGES? THE LIST IS ALMOST UNLIMITED FOR AN INDIVIDUAL RETAIL TRADER.
Suggestion on the relation between Cointegration and Corelation
We like to see high correlation and high cointegration. Remember, correlation measures how much the two securities move in the same direction at the same time. Since we are trading a reversion of their price ratio to the mean at a moment when they ...
How Does PairTrade Finder PRO work?
With regard to whether PairTrade Finder PRO works, you can demo it for 15 days for FREE to experience the results for yourself. After that, you will be harged for your subscription, though you have a further 30 days in which you may cancel and ...
Can you use this strategy with a small account, and what's the minimum account size that is recommended?
The ability to use the strategy effectively depends on two critical things: a. conservative position sizing and b. very low commissions. While you can use a small DMA CFD account of say $2,000 to try out a few trades at $1000/leg, unless your ...