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Simple Pairwise Trading Algorithm for Amazon & Tesla (Thriving through Corona-virus)

Backtest 1 of Pairs Trading Algorithm using Amazon and Tesla. Basically I saw these two stocks being highly correlated (around 88 percent over the last 7 months). I then implemented a simple pairs trading algorithm to test this strategy and it gave my surprising returns! I feel very motivated to continue my learnings :)

1 response

hi,
there is max drawdown, the strategy is risky. You need to apply some leading indicators to minimize the drawdown
Regards
Akshay