The Basic Idea Is Simple
If you predict that Apple will beat Google in the next few days, buy Apple and sell Google short. If you predict the opposite, buy Google and sell Apple short. It's not important which company's stocks rise or fall. You're only interested in their relative performance.
If you do it right (and we'll show you the best way), you can make money even when times are tough. If the whole tech sector reports bad earnings, it's all the same to you because one stock recoups the losses of the other.
Stock market corrections will bother you no more. You'll make money whether the market goes up or down.
While individual stocks are hard to predict without devoting many hours of time and effort to research, trading stocks in pairs is a different animal. Apple and Google are rivals; they launch competing products, they publish reports, and their stock prices compete in the same way. Signals generated by our software will enable you to profit from predictable changes in the difference between the stock prices of the two companies.
Tens of Thousands of Market Rivals Analyzed by Our Powerful Computers
Apple and Google are just one example of many pairs of competing companies. Thousands of other well capitalized companies are listed on major U.S. stock exchanges. If you combined all the rival stocks, you would get tens of thousands (!) of pairs to analyze.
Our cutting-edge software, running on our powerful computers, backtests all of them every day. The result of crunching such HUGE amounts of data is a user-friendly interface that provides a list of the top performing pairs and all the necessary details to create your own portfolio. Just pick the best pairs, relax and receive the daily signals.
- It combines all liquid stocks on the NYSE, the NASDAQ, the AMEX and the Australian Stock Exchange
- Up to 10 years of backtesting on each pair
- Useful information for each stock pair: equity curve, winning rate, maximum drawdown, average profit and much more
- Total equity curve of your portfolio
- Signals can be sent to your email
- Nothing to install! A web-based application that can run in your favorite browser. Works on PC, Mac or mobile device.
As Easy as 1-2-3. We Do All the Hard Work for You.
Select Top Rival Stocks
Start by signing in to the members' area and picking the top performing pairs with a consistently rising equity curve over the last 5 or 10 years. There are plenty to choose from, so be selective.
Enter Account Size and View Total Portfolio Equity
This is where you get to see the total equity curve of your whole portfolio, which will give you a good idea of how much you would make in one, five or ten years.
Either check the members' area for new signals once a day, or simply receive the signals via your mailbox. No need to hurry, as the trade will last for several days. Any minor difference in the entry price is not crucial to overall profitability.
Take the guessing out of where the market is going. Enter and exit promptly, based on clean signals. No manuals to study. Three short but comprehensive videos ranging from 3 to 7 minutes in length will guide you through all the steps.
In addition, you'll receive the "Buy & Sell Rival Stocks for High Returns" ebook containing detailed explanations of what you're actually doing, how to implement hedging in your stock trading, the secrets of hedge funds and the myths surrounding short selling. A guaranteed good read!
It Was the "Big Dogs" Secret
Until relatively recently, our pair-trading strategy – also known as arbitrage trading – was known only to hedge fund managers, banks and large financial institutions, who took advantage of it for decades. There was very little information available to retail traders and absolutely no tools that would make it easy for everyone.
We focus only on the liquid stocks of well-established companies, mainly blue-chip stocks that are easy to trade in both directions – long or short. With the traditional buy & hold (or buy & pray?) approach, you'd be hard-pressed to make a return in the short term. Only a few non-professional traders can beat the S&P by holding stocks alone. With our method, and no additional effort, beating the S&P by 100% or more is achievable.
The Power of Diversification & Hedging
High winning rate (80-90%) and low drawdown is the nature of this time-tested strategy. And it becomes even better when different pairs are added together. The balanced equity of the whole portfolio is stable and consistent.
Diversification dramatically reduces risk. And we're not just talking about holding multiple stocks. (In the event of a significant stock market correction, most stocks plunge at the same time!) We're talking instead about diversifying between multiple stock pairs where you hold equal amounts on both the long and the short side, also known as hedging.
Compounding Is the Key to Wealth
Reinvesting pays off. As your account grows, you trade more shares, which make you more profits to add to your account in order to trade more shares, and so on. You can also see the total equity when the compounding box is checked. On the left, you see you would turn 10 thousand dollars into 20 million dollars in 10 years!
This is what a typical daily signal would look like:
Buy AAPL 6 shares / Sell Short GOOG 1 share
Your job is to buy 6 shares of Apple and sell short one share of Google. After doing that, you're done for the day. The number of shares is automatically calculated from your settings (account size and investment per pair) so that you hold an equal amount on the long and short side.
We recommend you update your portfolio once every one to three months to ensure that you're watching the best performing pairs at any particular time. The first video tutorial below (from the members' area) shows you how to do it.
The video tutorial provides additional tips on selecting a robust portfolio, including checking the performance of individual stocks on the long and short side, comparing the 5-year and 10-year equity curves, and much more besides. You can also see a detailed backtest chart of each pair with entry and exit arrows. Our main focus is on ease of use and overall user experience.
Questions & Answers
Do I need to be glued to the computer?
Absolutely not. We hold positions for about 10 days on average – maximum three weeks. Alerts are normally sent a few minutes before the stock market opens. Entry time is not crucial as the trade lasts several days. This gives you the freedom to execute the trade at whatever time of day you normally read your email.
How much time do I need to spend on this?
Just a few minutes per month. It takes no longer than executing simple market orders. With a reasonable portfolio of 10 pairs, you'd get an average of 10 signals per month. Once every one to three months, you'd update your portfolio with the top performing pairs at that particular time. Our web-based software will teach you everything you need to know in about 20 minutes, and you'll love it!
Is it suitable for beginners?
For anyone who's new to stock trading, the tutorial on executing trades makes everything crystal clear. Our strategy will put you light years ahead of the "buy & pray" crowd, even if you're an absolute beginner. We've already done the hard work, now it's up to you to benefit from it.
Do I need to keep it running on my computer?
No, it runs on our servers. You use the web interface to select your own portfolio from the list of top performing pairs, and the alerts will arrive to your mailbox. It's that simple.
What is the minimum account size?
As you will hold all positions overnight, you don't need to meet the minimum account requirement for day trading. However, you need a margin account for short selling. The account minimum depends on your stock broker, and a margin account can be as low as $2,000. We also explain a "trimmed" strategy (trading only on the long side) for those who want to start with a cash account as low as $500 (or even no minimum).
Can I use it with penny stocks?
No, you can't. We focus on strong companies with market capitalization of at least $80M that have been operating for long enough to provide data that can be reliably backtested. We only analyze stocks that cannot be manipulated.
How do you determine when to buy or sell?
Our software uses sophisticated indicators to determine whether a stock is extremely outperforming its rival that usually moves in a similar fashion. In such cases, we sell the outperforming stock short and buy its rival. After a few days, we send an exit signal. You can find out about this in greater detail in the ebook "Buy & Sell Rival Stocks for High Returns" that you'll receive right after you subscribe.
Full lifetime access for a one-time only payment of $87.
No installation needed. Start immediately after purchase. You're just three clicks away from cutting-edge technology originally developed for hedge fund traders and now available to guys like you!
In uncertain times like these, there's never been a better time to start pair trading. Register now.