Explore the fundamentals of mean reversion trading, as elucidated by Dr. Ernest Chan for beginners, and then delve into an exhilarating journey to gain a comprehensive understanding of unlocking the power of algo trading for success, discovering what EPAT holds for you with our counselors. Register Now - bit.ly/3TCIbcL FREE Ebooks: 🎁Machine Learning In Trading | Step By Step Implementation of ML Models - bit.ly/3SXt7Ww 🎁Algorithmic Trading | A Rought & Ready Guide - bit.ly/48n9b3E 🎁Python Basics | With Illustrations From The Financial Markets - bit.ly/48hqCCW
Sir, In pars trading can one trade spread between SP500 & Nasdq 100 based just on market sentiment of broad market/major indices.When sentiment is bullish,Nasdq100 would outperform SP 500 index.And in bearish scene vice versa.Same may be applied for pairs trading SP500 & Dow 30.In weak market Dow 30 would hold better & go down less compared to SP500/nasdq100.We seek your wisdom.Thank you.
Hi Navketan! Pairs trading strategy is usually made by finding cointegration, not correlation. The strategy that you described is correlation-based. Cointegration refers to two assets which share a stationary equilibrium. This equilibrium is given by a model, for example MSFT = a + b*APPLE + error, where error is to be found to be stationary, if so, we say MSFT and APPLE are cointegrated. Correlation means the correlation between MSFT and APPLE is close to 1 or -1. If you have more questions or need further clarification, feel free to ask. Happy trading!👍
Hi! Thank you for your comment. This is the recording of a webinar on the 'Basics of Mean Reversion Strategies' by Dr Ernest Chan. It is independent of the 7.5 hour Quantra course. If you wish to learn course, kindly visit: quantra.quantinsti.com/course/python-mean-reversion-strategies-ernest-chan We hope this helps with your query?
Hi! thanks for your comment. Yes, there are solutions for this. With efforts on research, you can find answers for the same. - Firstly, you would have to find an optimum pair to trade on. - Secondly, you would need to optimise the entry and exit parameters, among other things for a profitable strategy. Since the transaction costs are always fixed, a pair that gives you on average higher returns per trade than what it costs to execute would be profitable. So the research for good pairs and parameters is important, and something that you can look into. We hope this is helpful.
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
Explore the fundamentals of mean reversion trading, as elucidated by Dr. Ernest Chan for beginners, and then delve into an exhilarating journey to gain a comprehensive understanding of unlocking the power of algo trading for success, discovering what EPAT holds for you with our counselors. Register Now - bit.ly/3TCIbcL
FREE Ebooks:
🎁Machine Learning In Trading | Step By Step Implementation of ML Models - bit.ly/3SXt7Ww
🎁Algorithmic Trading | A Rought & Ready Guide - bit.ly/48n9b3E
🎁Python Basics | With Illustrations From The Financial Markets - bit.ly/48hqCCW
Starts at 4:00
Thank You Sir 🎉🎉🎉
Most valuable information, thanks chan
Sir, In pars trading can one trade spread between SP500 & Nasdq 100 based just on market sentiment of broad market/major indices.When sentiment is bullish,Nasdq100 would outperform SP 500 index.And in bearish scene vice versa.Same may be applied for pairs trading SP500 & Dow 30.In weak market Dow 30 would hold better & go down less compared to SP500/nasdq100.We seek your wisdom.Thank you.
Hi Navketan! Pairs trading strategy is usually made by finding cointegration, not correlation. The strategy that you described is correlation-based. Cointegration refers to two assets which share a stationary equilibrium. This equilibrium is given by a model, for example MSFT = a + b*APPLE + error, where error is to be found to be stationary, if so, we say MSFT and APPLE are cointegrated. Correlation means the correlation between MSFT and APPLE is close to 1 or -1.
If you have more questions or need further clarification, feel free to ask. Happy trading!👍
Is there a recording of the whole 4 hour course?
Hi! Thank you for your comment. This is the recording of a webinar on the 'Basics of Mean Reversion Strategies' by Dr Ernest Chan. It is independent of the 7.5 hour Quantra course. If you wish to learn course, kindly visit: quantra.quantinsti.com/course/python-mean-reversion-strategies-ernest-chan
We hope this helps with your query?
23;00...transaction costs is what kills mean reversion strategy. But there are solutions for this right ?
Hi! thanks for your comment. Yes, there are solutions for this. With efforts on research, you can find answers for the same.
- Firstly, you would have to find an optimum pair to trade on.
- Secondly, you would need to optimise the entry and exit parameters, among other things for a profitable strategy.
Since the transaction costs are always fixed, a pair that gives you on average higher returns per trade than what it costs to execute would be profitable.
So the research for good pairs and parameters is important, and something that you can look into.
We hope this is helpful.
the video is out of sync