Result-Driven Pairs Trading Strategy

  • Closed
  • Course
  • 37 Lessons

Deep dive into the quantitative analytics of consistent quant trading strategies

About this course

Wondering about how to make your trading consistent? Forget about those ’N Trading Strategies that every trader should know’, because there is more than meets the eye in this competitive field. If taken only on a theoretical level, you may be on a road of no return (yes, literally and could also be negative return…). 

In this course, we will show you the science, methodologies and inner workings of a well-tested results-driven trading strategy. We have done the hard work and tested out various trading strategies and for the first time, we are revealing the secrets of the trade. 

In part 1 of this series, we will show you step-by-step coding in Python on how to craft your own pairs trading strategy, including:
  • performing thorough research to validate your trading ideas,
  • performing backtesting to see how viable the strategy is,
  • checking the practical side of things that so many traders ignore,
  • evaluating the strategy from a number of perspectives so that you have confidence in putting this into live trading, and
  • practical tips, and much more… 

Dr Tom Starke

CEO of AAA Quants

With Tom's extensive expertise of over 15 years in the field and his valuable collaborations with prestigious hedge funds and proprietary trading firms,
he empowers you to play in the big league of finance too.

Tom has a passion for teaching and sharing his knowledge with others. Drawing from his own experience, he has built AAA Quants Academy as a solution he wished he had when he began his journey.

Now, you too can leverage the condensed
knowledge and expertise on this platform to excel in
quantitative finance and algorithmic trading.
XLinked_inYoutubeWebsite

What you'll achieve by the end of the course

You will be able to:

  • understand the fundamentals on how to create a trading strategy that could bring you consistent returns,
  • follow along and hopefully put together a successful pairs trading strategy,
  • transfer the skills you learn from this course to other trading strategies and make better trading decisions. 

A note of caution: we are not promising quick money, neither this is a quick money generating machine, dedication and perseverance are still needed to succeed in this battle field!

  • $749

Result-Driven Pairs Trading Strategy

  • Closed
  • Course
  • 37 Lessons

Take your trading to a new level!
Join now

Contents

1. Research

1.1 Introduction
1.2 Pairs Trading
1.3 Which Instruments Should We Consider
1.4 The Other Side Of The Coin (Pair)
1.5 Tradability - What Are We Looking For?
1.6 Cointegration (1)
1.7 Cointegration (2)
1.8 Persistence Of Process (1)
1.9 Persistence Of Process (2)
1.10 Wait, There Is More!
1.11 Making It Tradeble
1.12 Further Practical Considerations
1.13 Hedge Ratio And Mean Reversion
1.14 Adjustments To Trading Signal
1.15 Statistical Methods For Cointegration

2. Backtesting: how viable is the trading strategy?

2.1 Backtest Construction
2.2 P&L Curve Calculations
2.3 Datetime Handling
2.4 Long/Short Strategy
2.5 Threshold Parameter
2.6 Unrealised P&L
2.7 Strategy Parameters
2.8 Cash Requirements
2.9 Impact Of Hedge Ratio, Trading Costs & Term Structure
2.10 Time-In-Trade Considerations

3. Roll returns

3.1 Crude Oil Term Structure
3.2 RBOB Term Structure
3.3 Practical Considerations
3.4 Incorporating Roll Returns

4. Is this a winning strategy?

4.1 What Constitutes A Winning Strategy
4.2 Win/Loss Ratio
4.3 Profit Factor
4.4 Sharpe Ratio
4.5 Drawdown
4.6 How To Trade With Limited Cash
4.7 Final Tips

Python notebook

This is the accompanying Jupyter notebook for the Pairs Trading Strategy. 
Pairs_Trade_Course_Code.ipynb