Pairs trading is a market-neutral trading strategy that involves buying and selling two stocks simultaneously.
I have looked into pairs trading strategies. Usually they look great if you ignore transaction costs. Maybe some institutional investors with very low transaction costs can deploy these strategies, but for retail traders I think it’s a dead end.
What time frames did you look at? If you go with longer time (days, weeks) it can be done for retail investors.
Thanks Nam, what time frame do you suggest? If I remember correctly I mostly looked into 1-5 days.
You have to find your comfort zone. But something like 3 days up to 3 weeks would work for retail traders
I have looked into pairs trading strategies. Usually they look great if you ignore transaction costs. Maybe some institutional investors with very low transaction costs can deploy these strategies, but for retail traders I think it’s a dead end.
What time frames did you look at? If you go with longer time (days, weeks) it can be done for retail investors.
Thanks Nam, what time frame do you suggest? If I remember correctly I mostly looked into 1-5 days.
You have to find your comfort zone. But something like 3 days up to 3 weeks would work for retail traders