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Pairs trading is a market-neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy.
4
votes
I am having difficulties calculating returns correctly
There is a common practitioner mistake when creating long/short strategies, thinking that you can create wealth out of nothing, hence, having an infinite return.
In practice, you need money to start t …