Pairs Trading and Cointegration Explained
Cointegration is what pairs trading actually needs, and correlation is not the same test. Build the hedge ratio, spread and z score by hand on real closes.
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Cointegration is what pairs trading actually needs, and correlation is not the same test. Build the hedge ratio, spread and z score by hand on real closes.
A grid trading bot buys each step down and sells each step up inside a fixed range. See the market shape that pays for the mechanism and the one that breaks it.