AS of 9:18 today, January 15, 2025, TSLA is recovering a bit after a small decline.
Avtive optional stock possible breakout.
January 8, 2025 by
After a long decline, MRNA may show signs of a small.
Pairs trading using trend following and not mean reversion.
January 5, 2025 by
Trend-Following Pairs Trading
Instead of betting on the convergence of two assets, trend-following pairs trading capitalizes on the divergence between them. This approach involves:
- Identifying two correlated assets that are beginning to diverge
- Going long on the outperforming asset and short on the underperforming one
- Riding the trend until it shows signs of reversal
This strategy assumes that the divergence will continue before potentially reverting.
Yesterday, Friday, January 3, 2024, I gave an example of AMD vs NVDA.
Today, Monday, January 6, 2024, the continuing battle between all EV and partial EV, TSLA vs TM:
.
Pairs trading using AMD vs NVDA
January 2, 2025 by
The basic strategy is to go long the Green (AMD) and short the Red(NVDA) when the vertical line corresponds to the color Green and vice versa.
A more certain result will happen when the underlying AMD and NVDA are also in the opposite direction.
For more information on this very profitable strategy, please contact me at rfeit@msn.com.
