Pairs Trading/ Market Neutral Trading

[liquidstrats 10]

Hi All,

Wanted to use this a place to discuss and enrich the knowledge base for pairs trading/ market neutral strategies. I have been doing this for over five years now with good results.

 

Regards,

Liquidstrats

[BlueHorseshoe 10]

Hi All,

Wanted to use this a place to discuss and enrich the knowledge base for pairs trading/ market neutral strategies. I have been doing this for over five years now with good results.

 

Regards,

Liquidstrats

 

I would certainly be very interested to discuss pairs trading or any kind of stat arb - unfortunately I know very little about it. Maybe you could start with some broad definitions, some words on market selection, and a few examples of how to implement market neutral concepts?

 

If you've been doing this for about five years, then this would mean you started out around the time all the quant funds at the investment banks went belly-up trading this way, is that right? Have market neutral approaches become more forgiving again since that time?

 

Many thanks,

 

BlueHorseshoe

[liquidstrats 10]

methodology and details are posted on my website by the same name as my id. Early 2009 to 2011 was one of the best times for this strategy.