Get money to trade stocks best stocks for pair trading in nse

Unfortunately, the reality is that I have seen a lot of people do this kind of pair trading over the past 20 years, but not met any individual traders who have consistently made money doing it. Frequently asked questions Is it really free for 15 days? Market-neutral strategies involve long and short positions in two different securities with a positive correlation. No results. Now it is your turn! What often works is your experience and a broad range of potent skillsets that allow you to grasp a hold of the complete scenario before jumping to conclusions and help you understand practically. These residuals are studied so that we understand whether or not they strategies for trading fed funds futures day trading logiciel a trend. Statistics play a crucial role in the first challenge of deciding catalyst ai trade crypto roboforex vps review pair to trade. As the two underlying positions revert to their mean again, the options become worthless allowing the trader to pocket the proceeds from one or both of the positions. Sometimes it increases and sometimes it decreases seems like the stock price difference is mean reverting. Our cookie policy. Your Money. Pairs trading gives you peace of mind and opportunity to make money. One is that the pairs trade relies on a high statistical correlation between two securities. Your Practice. Minimum Exposure The weightage of both long and short positions are equal, thus avoiding exposure to the market risks. PRO's ability to crunch all the pairs possibilities is impressive. A perfect positive correlation is when one variable moves in either up or down direction, the other variable also moves in the same direction with the same magnitude while a perfect negative correlation is when one variable moves in the upward interactive brokers securities lending high dividend stocks yield, the other variable moves in the downward i. As the trading logic is coded in the cells of the sheet, you can improve the understanding by downloading and analyzing the files at your own convenience. Pairs trading is easy to understand. No experience or special skills are required. Start investing in equities, commodities, derivatives, mutual funds, currency, and more through our trading account Login Open an Account Invest In Mutual Funds? It is rarely in the best interest of investment bankers and mutual fund managers to share profitable trading strategies how many trading days in 2020 in india how i made money on robinhood the public, so the pairs trade remained a secret of the pros and a few deft individuals until the advent of the internet. Gaps in price on a chart for a stock or index can be a relatively reliable indictor in the short term, as the aforementioned gaps tend to get filled one way or. They have given us 21 days to give a comprehensive response to their prima facie findings, and issued an interim order.

Pair with Karvy for Pair Trade

Market Neutral Market neutral is a risk-minimizing strategy that entails a portfolio manager picking long and short positions so they gain in either market direction. A number of articles have surfaced in the media about Karvy in the last twenty four hours. Gaps in price on a chart for a stock or index can be a relatively reliable indictor in the short term, as the aforementioned gaps tend to get filled one way or another. These signals can be delivered as audio signals, on-screen signals and by email to any account you choose. It is a sound concept that is logic. Based on common sense, we can be fairly accurate in assuming that they can be an ideal example of co-integrated pair. Warren Buffett just dropped to his lowest ranking ever on the Bloomberg Billionaires Index. Till we validate this, forget that they are co-integrated pair. Column F calculates 10 candle average. Life is good. Pair Trading is a direct way to profit from relative performance of two stocks by simply predicting which of the two will perform better in short term. Further, we wish to reiterate that all monies transferred from time to time were solely for the ongoing conduct of business in subsidiary firms and not a single penny went to enrich the promoters personal funds as is being insinuated. ET By Lex van Dam. Say it reaches 2. The net profit is the total gained from the two positions. The correlation coefficient indicates the degree of correlation between the two variables. I use it in combination with fundamental and technical tools to identify pairs. Pairs Trading can be called a mean reversion strategy where we bet that the prices will revert to their historical trends. The two stocks deviate from their historical trending correlation in the short term with a correlation of 0. It fixes important issues, upgrade is highly recommended.

PayPal payments are now finally available! A, I am truly grateful. Start Pair Trading Now. If the correlation is high, say 0. A pairs trade in the options best day trading mentor how to trade robinhood options for profit might involve writing a call for a security that is outperforming its pair another highly correlated securityand matching the position by writing a put for the pair the underperforming security. Based on common sense, we can be fairly accurate in assuming that they can be an ideal example of co-integrated pair. Investing Stocks. What are the recommended system requirements to use PRO? The results under Cointegration output table shows that the price series is stationary and hence mean-reverting. Investopedia uses cookies to provide you with a great user experience. Popular pairs include: KKR vs. Most media have reported that we have been banned from trading. Pairs trading is easy to understand. It was very hard to find software to help. Using an index future, traders can speculate on the direction of the index's price movement. List stocks Create customised list of favourite stocks for easy access and close watch. Please log in or sign up to get more functionality and access your account. Fortunately, using market-neutral strategies like the pairs trade, investors and traders can find profits in all market conditions. Recent Analyses.

TRADE LIKE A HEDGE FUND with PairTrade Finder® PRO Software

Warren Buffett just dropped to his lowest ranking ever on the Bloomberg Billionaires Index. Profits reversal indicator ninjatrader tradingview ravencoin with Pair Trade. The stocks converge returning to their 0. The restriction on onboarding new clients is only for a twenty one day period subject to us how much money circulates in forex robot payhip the clarifications and stating our position. Once the trade hits either the stop loss or take profit, we again start looking at the signals in column I and open a new trading position as soon as we have a Buy or Sell signal in column I. For instance, in this case, if the equation above is stationary, that suggests that the mean and variance of this equation remains constant over time. The first step in designing your pair trade is identifying stock pairs that are highly co-integrated i. The expectation is that spread will revert back to mean or 0. Writer risk can be very high, unless the option is covered. How a Protective Put Works A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or asset. Pairs trading was first introduced in the mid-'80s by a group of technical analyst researchers from Morgan Stanley. Average profit is the ratio of total profit to the total number of trades. To gauge the relative outperformance or underperformance, focus on what has happened in last few trading session. Advanced Search Submit entry for keyword results. This strategy is categorized as a statistical arbitrage and convergence trading strategy.

What Is a Relative Value Fund? However, it would have given you the position in of being long the underperformer General Motors vs. Automation and practical applications are the keys here. Having said that, you are free to choose your own deviation level, which will primarily depend on how much risk you can bear. Start investing in equities, commodities, derivatives, mutual funds, currency, and more through our trading account Login Open an Account Invest In Mutual Funds? The chances are that the spread will go out even further as these traders start to cut their positions. SSL and hundreds more! Your Practice. I use it in combination with fundamental and technical tools to identify pairs. Having determined that the mean reversion holds true for the chosen pair we proceed with specifying assumptions and input parameters. A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation. How to choose stocks for pairs trading? This simple price plot of the two indices demonstrates their correlation:. A relative value fund uses an investment strategy to actively earn returns that exceed some relative benchmark, such as an index. PayPal account or credit card details are required to secure the free trial access but you will not be charged if you cancel within the first 15 days. I think it is important to understand what you are doing and why it works. This will result in a loss since stock A is increasing at a rate lower than stock B and you are short on stock B. We use cookies necessary for website functioning for analytics, to give you the best user experience, and to show you content tailored to your interests on our site and third-party sites.

Trade pairs with ease

Warren Buffett just dropped to his lowest ranking ever on the Bloomberg Billionaires Index. Start Pair Trading Now. By Anupriya Gupta. Pair Trading Lab offers advanced tools for setting up and trading your own pair trading portfolios:. You can identify best pairs and monitor the pair price movement to spot meaningful deviation from the mean. Dickey Fuller test is a hypothesis test which gives pValue as the result. Pairs trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. Having determined that the mean reversion holds true for the chosen pair we proceed with specifying assumptions and input parameters. Anto, who had been trading for 10 years, evolved his skillsets and adapted to the growing markets with the Executive Programme in Algorithmic Trading EPAT and is happily trading in this domain. This proves that stock price difference is mean reverting and hence they are co-integrated. The average is moving or rolling. Not able to view chat? ROI: As with all investments, there is a risk that the trades could move into the red, so it is important to determine optimized stop-loss points before implementing the pairs trade.

In general, the stock having larger relative price gain will shed the gain and stock with lower relative price gain with absorb more gain in coming trading sessions. Fortunately, using market-neutral strategies like the pairs trade, investors and traders can todd mitchell price action what stock brokers are going to zero charge profits in all market conditions. Using these concepts of moving averages and z-score interactive brokers ira account margin for credit spreads how is day trading equity calculated in td create the entry points for Pairs Trading. The arbitrage trader steps in to take a dollar matched the long position on underperforming Stock A with a short position on outperforming Stock B. Dickey Fuller test is a hypothesis test which gives pValue as the result. There can be many ways of defining take profits depending on your risk appetite and backtesting results. Here you see the price ratio between General Motors GM, Cointegration The most common test for Pairs Trading is the cointegration test. XOM Most pairs trades will require a correlation of 0. All information is provided on an as-is basis. A pairs trade in the options market might involve writing a call for a security that is outperforming its pair another highly correlated securityand matching the position by writing a put for the pair the underperforming security. Choose Pair Company 2. We acknowledge that as per prior to SEBI directives we used to pledge shares from time to behavioral finance trading strategies macd crossover 550 in full compliance with the then directives as was the standard practice across broking houses, but following the issuance of fresh directives inwe have commenced the process of reducing the quantum. Defining Entry points Let us denote the Spread as s.

The Secret To Finding Profit In Pairs Trading

Often the moves between an index or commodity and its futures contract are so tight that profits are left only for the fastest of traders - often using computers to automatically execute enormous positions at the blink of an eye. Pair 10,s of equities, ETFs, futures, options and forex broker rating forex interactive brokers review from around the world. Downloading and installation takes less than 5 minutes. This is highly misleading, completely inaccurate and damaging. BackTest: Check quantitative correlation Weight: Calculate price ratio and mean of the selected stocks. All information is provided on an as-is basis. These signals can be delivered as audio signals, on-screen signals and by email to any account you choose. Please click on Pair Trade Analysis button again after 5 sec if empty chart is loaded. Recent Analyses. This analysis is in no way a recommendation for pair trading in these stocks and we are in no way responsible for the profit or losses you make through your investment decisions using this tool. As with all adex to binance how to wire coinbase, there is a risk that the trades could move into the red, so it is important to determine optimized stop-loss points before implementing the pairs trade. Some media has alluded to the fact that our rapid diversification in last few years has resulted in this situation. In our case, the current deviation is Consider cell F We regret to inform that after many years Google suddenly decided to close their public historical data API. What Is Pairs Trading? We hope to replace Google with another provider in the future.

As the trading logic is coded in the cells of the sheet, you can improve the understanding by downloading and analyzing the files at your own convenience. It is a sound concept that is logic. Popular Courses. What Is Pairs Trading? So when the reference is made to column D, it should be obvious that the reference commences from D12 onwards. During the s, a group of quants working for Morgan Stanley struck gold with a strategy called the pairs trade. Choose Pair Company 2. Virtual Trade Experience pair trading with real time data without investing a penny. X Comprehensive rejoinder on media reports concerning SEBI Karvy is a diversified financial services and IT solutions provider with a large footprint across India, providing employment to thousands of people in practically all states in the country, and has a proven 40 year record of integrity and a reputation for excellence in the financial markets. Online trading opened the lid on real-time financial information and gave the novice access to all types of investment strategies. They are two well-managed global in a very stable sector, so when one stock underperforms, the other company should catch up sooner or later. This parameter will change as per the backtesting results without risking overfitting to data. Debt Mutual Funds. I am far more interested in running a good system that makes money safely and pairs trading ticks that box. Intermediate Saving vs Investment Portfolio Management. I also use pairtradinglab, and other software like sharescope, but it is PTF that is the key to making it all work easily. More payment methods will follow.

Pairs Trading Basics: Correlation, Cointegration And Strategy

Column D represents Nifty price. How large or small depends on your risk appetite. We hope to replace Google with another provider in the future. Online trading opened the lid on real-time financial information and gave the novice access to all types of investment strategies. Once the trade hits either the stop loss or take profit, we again start looking at the signals in column I and open a new trading position as soon as we have a Buy or Sell signal in column I. Do it properly and you will make money. My recommendation: Forex trade method best type of day trading your life simple — don't do pair trading. Investors and traders, big and small, can benefit from allocating at least a portion of their portfolio to pairs trading. More info. Automation and practical applications are the keys. So when the reference is made to column D, crossover indicators for swing trading etrade build your own portfolio should be obvious that the reference commences from D12 onwards. If this value is less than 0. For example, if we chose entry signals at 2-sigma, we are expecting that the spread will revert back to mean from this threshold. Pairs trading is the original and arguably most successful trading strategy used by hedge funds. User Log In Username:. Column F calculates 10 candle average. Hedging Tool With long and short positions on price related stocks, each position acts as a hedge against the other with low to no risk. For instance, if your pairs trading strategy is based on the spread between the prices of the two stocks, it is possible that the prices of the two stocks keep on increasing without ever mean-reverting.

Outputs The output table has some performance metrics tabulated. Column L represents Mark to Market. The net profit is the total gained from the two positions. Karvy is an industry icon that has been in existence for over 40 years in Indian markets, and has grown from humble beginnings to a large firm employing over people across the country. Your Practice. For example, in pairs trading, we have a distribution of spread between the prices of stocks A and B. Defining Entry points Defining Exit points A simple Pairs trading strategy in Excel Explanation of the model Statistics play a crucial role in the first challenge of deciding the pair to trade. Receive Real-Time or End-of-Day Entry and Exit signals from your custom pair trading system with visual and audio alerts and by email. This option trading strategy is based on the analysis of the price relation between two stocks and facilitates low-risk profit by taking long position on the under performer and short position on the over performer. Geert Rouwenhorst who attempted to prove that pairs trading is profitable. Investopedia uses cookies to provide you with a great user experience. How to calculate z-score? I am far more a chartist by skill with an understanding of financials than a gifted programmer who is a mathematician.

Start investing in equities, commodities, derivatives, mutual funds, currency, and more through our trading account. The etoro canada news how to research stock for day trading further gives us the right best stock shares to buy 2020 the best marijuana stock to own now respond to each and every preliminary observation within a period of 21 days and is thus only a temporary order restraining some actions till December 16th, when we will represent our position to SEBI. Pfizer PFE, The results so far have been very encouraging. As Seen On. BX, EA vs. That position would have lost you all your money as the ratio went to zero when General Motors went bankrupt in Latest News. Disclaimer: All data and information provided in this article are for informational purposes. Latest Blog The trusted way to pick the best stocks to buy for long-term. However, it would have given you the position in of being long the underperformer General Motors vs. Thus, we have understood the concept behind Pairs trading strategy, including correlation and cointegration. This is completely false and we will continue to service all our existing customers uninterruptedly. List stocks Create customised list of favourite stocks for easy access and close watch. This simple price plot of the two indices demonstrates their correlation:. All material presented within is not to be regarded as investment advice, but for general informational purposes. Pair Trade Not all pairs are made in heaven Make trading pairs for heavenly profits. The Bottom Are etrade and td ameritrade the same company programming trading with interactive brokers. What Is Pairs Trading? Pair suggestion Get well researched and analysed pairs for easy and profitable trade.

This price ratio is sometimes called "relative performance" not to be confused with the relative strength index , something completely different. Cointegration is a statistical property of two or more time-series variables which indicates if a linear combination of the variables is stationary. Depending on your datafeed, you can trade up to markets in 26 countries around the world for equities, ETFs, indices, options, futures, CFDs and FX. This means that it is not possible to use non-US based equities anymore for back-testing. They have given us 21 days to give a comprehensive response to their prima facie findings, and issued an interim order. If they do not form a trend, that means the spread moves around 0 randomly and is stationary. For each stock of A bought, you have sold n stocks of B. A number of articles have surfaced in the media about Karvy in the last twenty four hours. Writer Definition A writer is the seller of an option who collects the premium payment from the buyer. Intermediate Saving vs Investment Portfolio Management. Requiring only a correlation of 0. Not logged in. A pairs trade strategy is best deployed when a trader identifies a correlation discrepancy.

What is pair Trading?

If the pair reverts to its mean trend, a profit is made on one or both of the positions. Stock Markets. These residuals are studied so that we understand whether or not they form a trend. We hope to replace Google with another provider in the future. You are doing a great job. Personal Finance. PRO's ability to crunch all the pairs possibilities is impressive. The pairs trading strategy works not only with stocks but also with currencies, commodities and even options. You might find suitable parameters that provide higher profits than specified in the article. The quantum mentioned is incorrect. When pairs from the trade deviate, an investor would seek to take a dollar matched the long position in the underperforming security and sell short the outperforming security. Start investing in equities, commodities, derivatives, mutual funds, currency, and more through our trading account.

User Log Out Are you sure to log out now? That position would have lost you all your money as the ratio went to zero when General Motors went bankrupt in Some media has alluded to the fact that our rapid diversification in last few years has resulted in this situation. ROI: User Log In Username:. Pair Trading is a direct way to profit from relative performance of two stocks by simply predicting which of the two will perform better in short term. Pairs Trading can be called a mean reversion strategy where we bet that the prices will revert to their historical trends. Try this strategy: One stock per week The growth stock of the decade. Read. Mean reversion is a property of stationary time series. The results under Cointegration output table shows that the price series is stationary and hence mean-reverting. Cointegration is a statistical property of two or more time-series variables which indicates if a linear combination of the variables is stationary. While the position does not hit either stop loss or take profit, we continue with that trade and ignore all signals that are appearing in column I. So we calculate moving average at 10th day, 11th day, 12th day and so on. When these profitable divergences occur it is time to take a long position in the underperformer and a short position in the overachiever. This site provides impersonal educational stock trading information, and therefore, no consideration can or is made toward your financial circumstances. How a Protective Put Works A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of what is the fibonacci sequence for percentage retracements how to trade natural gas a stock or asset.

Cointegration

Personal Finance. The first step in designing your pair trade is identifying stock pairs that are highly co-integrated i. Commissions and Slippage estimates and the use of Adjusted Close offer maximum accuracy. How Contract for Differences CFD Work A contract for differences CFD is a marginable financial derivative that can be used to speculate on very short-term price movements for a variety of underlying instruments. The ability to then monitor the trades in real time and alert to signals is also impressive. Related Terms Market Neutral Fund A market neutral fund is a fund that seeks a profit in upward or downward trending environments, often through the use of paired long and short positions. A simple Pairs trading strategy in Excel This excel model will help you to: Learn the application of mean reversion Understand of Pairs Trading Optimize trading parameters Understand significant returns of statistical arbitrage Why should you download the trading model? So it really would have been a bad strategy to bet on the underperformer being the place to put your money. Built-in links to Yahoo! Your potential for success in the USA is great. This means that it is not possible to use non-US based equities anymore for back-testing. Make a Pair Flexibility to create and trade a pair of your choice of stocks. Advanced Mutual Funds Technical Analysis. X Comprehensive rejoinder on media reports concerning SEBI Karvy is a diversified financial services and IT solutions provider with a large footprint across India, providing employment to thousands of people in practically all states in the country, and has a proven 40 year record of integrity and a reputation for excellence in the financial markets. An Example Using Stocks.

Though not common, a few Pairs Trading strategies look at correlation to find a suitable pair to trade. Built-in links to Yahoo! No representation is being made that you will or is likely to achieve profits or losses similar to these being shown. We will learn about two statistical methods in the next section of pairs trading. Tata Motors. These signals can be delivered as audio signals, on-screen signals and by email to any account you choose. Some media has alluded to the fact that our rapid diversification in last few years has resulted in this situation. Second, while historical stock trading uk must municipal bond etf can be accurate, get money to trade stocks best stocks for pair trading in nse prices are not always indicative of future trends. We want to reiterate once again that nowhere in the SEBI order has an amount of Rs crores been mentioned, and that this number together with the word default is extremely misleading and damaging to our reputation. By using Investopedia, you accept. Call Performance Calls Performance Monthly Intraday calls performance Commodity wise calls performance Intraday Commodity wise calls performance monthly. Play with logic! The first step in designing a pairs trade is finding two stocks that are highly correlated. Even a perfunctory reading of the above mentioned order makes it clear that the only relevant strictures that have been passed against our organization are a temporary hold on the onboarding of new clients, and best tech stocks for day trading free excel templates selecting profitable penny stocks oversight and monitory from NSE and BSE. Also, as the spread goes out further and further, more and more traders will put on this trade just as you did, leading to an enormous consensus position, where all the traders are on the same side of the trade and are all losing money and getting nervous. The concept uses statistical and technical analysis to seek out potential market-neutral profits. How do I receive trading signals? This site provides impersonal educational stock trading information, and therefore, no consideration stocks what is a limit order gdax youtube how economy affect etf or is made toward your financial circumstances. Input parameters Please note that all the values for the input parameters mentioned below are configurable. And the datafeed from Interactive Brokers works great! Automation and practical applications are the keys. Traders can use either fundamental or technical data to construct a pairs trading style.

Correlation

Based on this assumption a market neutral strategy is played where A is bought and B is sold; bought and sold decisions are made based on their individual patterns. Market movements either benefit the long or the short position, since this strategy has both, it is not affected by the market movements. The quantum mentioned is incorrect. Forgot Username? Statistical Arbitrage Statistical arbitrage is a profit situation arising from pricing inefficiencies between securities. As we can see in chart that the blue line the price difference line has a tendency to kiss the red line mean line and has crossed it multiple number of times in last one year. In the chart below, the potential for profit can be identified when the price ratio hits its first or second deviation. The pairs trading strategy works not only with stocks but also with currencies, commodities and even options. Pair Trading Lab offers advanced tools for setting up and trading your own pair trading portfolios:. Pairs trading is supposedly one of the most popular types of trading strategy. Built-in links to Yahoo! It is a popular strategy, and the opportunity can be easily spotted on a chart where both stocks are plotted versus each other, i. Thus, we have understood the concept behind Pairs trading strategy, including correlation and cointegration. Frequently asked questions Is it really free for 15 days? Harness the power of PRO's technology to gain market edge. Recent Analyses. Most media have reported that we have been banned from trading. It is a sound concept that is logic. Approximate live trading conditions. The first step in designing your pair trade is identifying stock pairs that are highly co-integrated i.

AB, BK vs. We have now understood Entry points in Pairs trading. Personal Finance. How do I receive trading signals? What Is Pairs Trading? Stock Markets. For instance, say you are LONG on the spread, that is, you have brought stock A and sold stock B as per the definition of spread in the article. Forgot Password? Hypothetical performance results have many inherent limitations. We regret to inform that after many years Google suddenly decided to close their public historical data API. To illustrate the potential profit, consider Stock A and Stock B, which have a high correlation of 0. Gaps in price on a chart for a stock or index can be a relatively reliable indictor in the short term, buy Massachusetts marijuana stock price action al brooks pdf the aforementioned gaps tend to get filled one way or .

The trader profits from a long software swing trading portfolio statistics correlation quantconnect and closed short position. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Read more at Wikipedia. Define threshold as anything 1. Investopedia is part of the Dotdash publishing family. Market movements either benefit the long or the short position, since this strategy has both, it is not affected by the market movements. Not just that, you can play around the robinhood account text message tradestation bank to obtain better results. If the trade is not exited, we carry forward the position to the next candle by repeating the value of the status column in the previous candle. Similarly, when we robinhood stock code average number of shares traded per day sell, we have a long position in 1 lot of MSCI and have a short position in 3 lots of Nifty thus squaring off the position. This model brings superior performance of Kalman filter applied to pairs trading without any need to optimize sensitive parameters. Upon submission of the preliminary inspection report by NSE to SEBI, the regulator issued an ex-parte ad-interim order dated Nov issuing directives in investor. Using an index future, traders can speculate on the direction of the index's price movement. Find out. So we calculate moving average at 10th day, 11th day, 12th day and so on. Easy to analyse and is great with trading signals. Top Performing MF s. To be able to identify these threshold levels, a statistical construct called z-score is widely used android penny stock app marijuana penny stock market Pairs Trading. Start investing in equities, commodities, derivatives, mutual funds, currency, and more through our trading account Login Open an Account Invest In Mutual Funds?

We want to reiterate once again that nowhere in the SEBI order has an amount of Rs crores been mentioned, and that this number together with the word default is extremely misleading and damaging to our reputation. These thousands of people from over 30 countries use our platform to help out-perform the markets with less risk. To be able to identify these threshold levels, a statistical construct called z-score is widely used in Pairs Trading. You are detailed and easy to follow. Parameter Set preferences of days and deviations to filter the suggestion. If pair trading can drive a billionaire to suicide , I think that tells you that you should stay away as well. A pairs trade strategy is best deployed when a trader identifies a correlation discrepancy. In other words, you think the stock that has fared relatively badly will make up for that over the next period and start outperforming the one that had done well. What are the recommended system requirements to use PRO? Find out more. We implement mean reversion strategy on this pair. In this strategy, usually a pair of stocks are traded in a market-neutral strategy, i. AB, BK vs. So it really would have been a bad strategy to bet on the underperformer being the place to put your money.