Spread/pair trading

If you are a day trader and have been frustrated with your ability to trade the futures markets with consistency, then maybe its time you took a look at spread trading and how hedgers trade the markets.

Two weeks ago we conducted a Futures Spread Trading Workshop in which we revealed how to identify trading opportunities with a reward/risk ratio of 3:1.

What is Pairs Trading?

  • Pairs Trading or the more inclusive term of Statistical

Arbitrage Trading is loosely defined as trading one

financial instrument or basket of financial instruments

against a second financial instrument or basket of

financial instruments – Long one and Short the other

COURSE HIGHLIGHTS

  • Training in live trading setups with real time market tracking and research
  • Learning from expert market participants
  • Detailed discussion and exercise on  Statistical arbitrage
  • Scientifically designed course by the market experienced knowledge team
  • Real Time Market monitoring at a week long workshop with main Faculty

Course Outline: Statistical Arbitrage

This  workshop introduces delegates to statistical arbitrage strategies, including pairs trading, with particular reference to research, testing and implementation. Relevant software (amibroker) will be used throughout the workshop to illustrate examples and to help students practice the essential steps in developing a stat arb strategy. No prior knowledge of amibroker is required. (Note: Students will be able to apply the principles learnt during the workshop, regardless of which software they choose to use thereafter).

COURSE CONTENT

  • Module 1: Futures Spread Trading Basics
    Important things you need to know about futures spread trading.
  • Module 2: Setting Up Your Charts
    Learn how to set up your charts for futures spread trading including the exact settings for the indicators you need.
  • Module 3: How To Trade Spreads
    Learn how to enter and exit a spread.
  • Module 4: Spread Trading Strategies
    Learn how to identify spread trading opportunities based on MACD, trendlines and range breakouts.
  • Module 5: Profit Target and Stop Losses
    Learn about the important relationship of reward/risk ratio and winning percentage to know where to place your stop losses and profit targets.
  • Module 7: GC/SI Examples
    Learn how to apply the trading strategies on the Gold/Silver Spread.
  • Module 8: Advanced Spread Trading Techniques
    Learn how to convert an outright trade into a futures spread trade to increase your profit potential.
  • Module 9: Advanced Spread Trading Techniques
    Learn about the powerful concept of “Inverse Spread Confirmation” to increase the accuracy of your entries.

What are the best markets to pairs trade?

  • Duration: 2 month- 2 days a week
  • Timing: 4.00pm to 7.00pm