Q&A by Rob Friesen
SOME RULES FOR PAIR TRADING
Most of my past columns here have been centered on the business of trading, psychology, discipline, and the trader’s review process that allows for that continual state of improvement, promotes focus, and facilitates consistency.
With the past few months of choppy market behavior, the lofty heights to which it has risen, concerns over a possible large pullback, and potential increase in volatility, there has been resurgence in the trading of equity pairs. Because of that, many have asked me to comment on the rules of thumb surrounding pair trading. So this month, we’re going to branch out and chat about trading pairs, and maybe continue this topic in the next few issues ...