Markets29 January 20266 min read

Pair Trading: A Market Neutral Strategy

Find two correlated stocks and bet on their spread. Profit regardless of market direction.

Pair trading is one of the oldest quant strategies.

Find two stocks that move together (like HDFC Bank and ICICI Bank). When their spread widens, short the outperformer and long the underperformer.

The key is cointegration testing, not just correlation.

Share

Get stories like this delivered to your inbox.

Moving Average Crossover: The Simplest Algo Strategy

The golden cross and death cross — how two moving averages can form the basis of your first trading bot.

Markets9 March 20264 min

Survivorship bias, look-ahead bias, and overfitting — the three enemies of every backtester.

Markets28 February 20265 min

Some traders bet prices will snap back. Others bet trends continue. Which approach works in Indian markets?