How It Works and Why It Matters
If you’ve ever wondered how it’s possible to trade in the stock market without guessing which direction prices will move, this video is for you.
In this short introduction, I explain the concept of Pairs Trading — a market-neutral strategy that involves trading two stocks that usually move together. When their relationship temporarily diverges, we look for a statistical correction, opening opposite positions to capture profit as they return to balance.
The video also shows real chart examples and demonstrates how my indicator identifies trading opportunities.
You’ll see that we’re not simply reacting to one stock going up and the other going down — the system analyzes correlation, Z-Score, Bollinger Band deviations (and other indicators), to generate accurate and reliable entry signals.
Pairs trading offers a smart, data-driven way to participate in the markets while keeping risk under control.
This is the first video in our Learn Pairs Trading series — designed to take you from the basics all the way to building your own trading system.