Pairs Trading

Today's video will cover a hedge fund strategy that allows you to profit from a difference in performance between two futures assets. This strategy can be quite lucrative as it enjoys both active and passive income potential.

Important links::

Get access to the passive income earning course here (with full bot access included)

_________________________________________________________________________________________________

Disclaimer: The content covered in this video is NOT investment advice and I am not a financial advisor. The material covered within these videos is for educational purposes only. Always do your own research and only invest based on your own findings and personal judgment. Happy Trading!

[christopherwebb]

Found this video today, great explination and now going through the channel. Thank you.

[Nightman]

Got a whole page of notes out of this. Gonna watch a few more times than give it a go. Tempting to try on Forex too. Thanks for sharing. Planning to take your DN course after I exhaust the free content. I asked a few questions via email still waiting for reply. Look forward to hearing from you.

[KhuramImtiaz]

What magic is this. Have to watch it a couple of times to understand the whole thing. Many terms were new for me. Thanks.

[chatnik]

You are the truly definition of a big brain. I don't even get some parts of the stuff you are talking about, in fact I don't even trade coins, lol, but still thanks for putting out the content! BTW, what is your opinion on trading currency futures. Any reason why you wouldn't recommend one trading them?

[leinadssab]

Eye opening, thanks for the information.

[ErikMcKenzie]

If you find a large funding rate (+ or -), would you benefit from opening contracts on the same coins Perp and Expiry contracts? Getting paid for funding on the Perp while opening a position in opposite direction on the Expiring Contract, effectively breaking even on the coin's price movements.
I haven't tried this, so not sure how it would work out in reality.

[slothner]

Hi,

Good video!

Doesnt pair trading use cointegrated pairs in a stationary state and not correlated pairs?

[whatnextkai]

The disadvantage of using expiring futures is you can't get out anytime as with perpetuals, is that right?

[PaulRoger]

Hello, why don't you recommend it for high cap market coin ? Thanks for the vid !

[amriksingh]

Hi what is that balance( Traju) symbol on trading view chart

[Tvrdinic]

This strategy is riskier more than normal trading. There is always 50:50 chance that movement of both will serve you or go against you. There is situations where your long and short will go continuously negatively of your positions. They will tracking each other but difference between them will be bigger and bigger.

[gohn_galt]

Thanks for information. But, would like to clarify one thing. Should I use cross or isolated margin? Where I can find maybe screener for pair ratio, too stupid to calculate myself. And you’re talking about using highly correlated coins. As an example BNB and ETH, highly correlated. But if the whole market goes down and you short one and long another. You will get more on shorts but, is there any market conditions where I should use it and where it’s not recommended? Would be awesome to get any tips

[sanoct]

What if I trade btceth pair with bot with dca method ? Will it profitable?

[whatnextkai]

Any ideas how this can be done on traditional stock? Do they have perpetuals?

[michalisavraamides]

hey dude!
Been watching your trading videos for a while as I have been trying to get into cryptocurrencies.
Im currently writing a thesis on an empirical analysis of pairs trading and I was planning to dive into cryptocurrencies and analysing whether it works there as there is no literature covering it.
Do you think it's possible that I can have a look at your data, methodology, results and insights into pairs trading for cryptocurrencies?
Thanks in advance hope you will be able to help

[c.syncro]

One could theoretically trade a spot asset against something with a positive funding rate

[bigtonutz]

wow def never knew this existed.... very interesting but i thought this was a basic lesson on crypto pairs.. but i think i understand a bit... never heard of these futures contracts...thing. wow.... this is like contracts like gas or oil etc etc??

[JohnEnergy]

Pairs limit risk, but also the profit potential.

[JohnEnergy]

"Going to FTX"... yeah that's a thingy today.

[vishalgaurav]

Please sometimes make a video on statistical arbitrage, explaining the formula of correlation and its realtime execution