Some of you may have heard about Statistical Arbitrage Pairs Trading, I have just recently filled out a blog about the strategy and also opened a twitter account for everyone to follow.
In a nut shell, 80% correlated stocks on ASX30 that have diverge from each other of about 2.7 standard deviations we enter a long and short position then when they converge back to their long term average 1 standard deviation we exit the trade. It's algorithm signal based and also trade on the US Market.
Basically, I'm running a proprietary software thats been getting excellent results. Visit the blog to read up about the strategy and contact form is on the right of the blog if you want to see more results.
Best thing about the strategy, is that its an income strategy that doesn't care where the market moves. It simply waits for two stocks to converge back together. Before running live, we did 6 years of backtesting using all sorts of parametres.