Sometimes a picture (or 2) is worth a thousand words so here are two views of the SLV/XLF pair trade setup with an equity curve that should make any pair trader worth his salt take notice. I’ve set the optimization routine to the new “z-rank” option and leave it to active subscribers to engage the DV setup so see how that affects the performance metrics. The trick, of course, is to find a pair with equal gains on either leg, otherwise the trader might just as well focus on the rolling z-score of a single ETF (such as silver) all by itself (Ticker A option).
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