Understanding Correlations and Cointegrations for Effective Pairs Trading
Pairs trading is a well-known trading strategy used in several markets, including ETFs, currencies, equities, and futures markets.…
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A trading strategy is a method used by traders to decide when and what to trade. Examples include position trading strategies such as value investing, momentum trading strategies such as breakouts and mean reversion, or technical analysis based strategies such as trend following. In order to be successful with these strategies, it’s important for traders to determine the goals of their strategy and understand the risks associated with each one.