To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.
One of the most successful stock timing programs is pairs trading, but the competition is fierce, the profits are small, and it takes a full-time commitment. Up to now, it’s been limited to professional traders. By applying the Stress Indicator and taking only the long side, we can increase the size of returns and we can still be protected when the market turns down. We can hold the trade for days instead of minutes. Learn about pairs trading and how it can be changed to be more profitable and work for you.