14. Live Example – 2
14.1 – Position Sizing I know, the discussion on pair trading was to end with the previous chapter, but I thought I had to discuss...
13. Live Example -1
13.1 – Tracking the pair data We have finally reached a point where we are through with all the background theory knowledge required for Pair...
12. Trade Identification
12.1 – Trading the equation At this stage, we have discussed pretty much all the background information we need to know about Pair trading. We...
11. PTM2, C4 – The ADF test
11.1 – Co-Integration of two-time series I guess this chapter will get a little complex. We would be skimming the surface of some higher order...
10. PTM2, C3 – The Error Ratio
10.1 – Who is X and who is Y? I hope the previous chapter gave you a basic understanding of linear regression and how one...
9. PTM2, C2 – Linear Regression
9.1 – Introduction to Linear Regression The previous chapter laid down a basic understanding of a straight line equation. To keep things simple, we took...
8. Pair trade Method 2, Chapter 1 (PTM2, C1) – Straight line Equation
8.1 – A straight relationship Today happens to be 14th of Feb, people around me are excited about Valentine’s Day, they are busy celebrating love and...
7. PTM1,C5 – The Pair Trade
7.1 – Quick Reminder We closed the previous chapter with a note on Density curve and how the value of the density curve helps us...
6. PTM1, C4 – The Density Curve
6.1 – A quick recap I think a quick recap is justified at this stage, this is to ensure we are all on the same...
5. PTM1, C3 – Pre trade setup
5.1 – Revisiting the Normal Distribution If you have been a regular reader on Varsity, then chances are you’d have come across the discussion on...