# Pair trade systems underrepresented at C2 **URL:** \ **Category:** C2\ **Created:** [July 11, 2013, 2:45pm UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090 "2013-07-11T14:45:05Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![KevinMcGrath2](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/kevinmcgrath2/32/110_2.png) [@KevinMcGrath2](https://forums.collective2.com/u/KevinMcGrath2)\ **Post date:** [July 11, 2013, 2:45pm UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/1 "2013-07-11T14:45:05Z")
Just a personal observation, but there seem to be no active pair trading systems currently. There are long/short systems that are discretionary in execution, but none that trade correlated pairs and are driven by robust statistical underpinnings. Just seems odd. Being a wildly analytical person these systems are of great interest to me, and as a system developer I already know they are easy to construct and trade mechanically. I’m curious as to the level of interest here in such systems. Feel free to post your thoughts here. ---
**Author:** ![AntonioPorsia2](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/antonioporsia2/32/548_2.png) [@AntonioPorsia2](https://forums.collective2.com/u/AntonioPorsia2)\ **Post date:** [July 11, 2013, 7:28pm UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/2 "2013-07-11T19:28:04Z")
Maybe you have missed Parcours Commodities system that is a purely analytical and mechanical commodity spread system - calendar and inter market. [LINKSYSTEM\_66262344] ---
**Author:** ![GaryLynn](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/garylynn/32/1487_2.png) [@GaryLynn](https://forums.collective2.com/u/GaryLynn)\ **Post date:** [July 11, 2013, 9:46pm UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/3 "2013-07-11T21:46:46Z")
\>Maybe you have missed Parcours Commodities system that is a purely analytical and mechanical commodity spread system - calendar and inter market. The results of this system are impressive. However, the system description states that it is a "discretionary portfolio based on seasonality". Which is it – mechanical, discretionary or a combination? Thanks. Gary ---
**Author:** ![KevinMcGrath2](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/kevinmcgrath2/32/110_2.png) [@KevinMcGrath2](https://forums.collective2.com/u/KevinMcGrath2)\ **Post date:** [July 12, 2013, 9:05am UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/4 "2013-07-12T09:05:05Z")
Glad to see that you are trading the spread - my point is that with over 900 active systems there is no stat arb systems for stocks (yours is for futures). Just seems like a gap in the fabric of trading systems here. ---
**Author:** ![AntonioPorsia2](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/antonioporsia2/32/548_2.png) [@AntonioPorsia2](https://forums.collective2.com/u/AntonioPorsia2)\ **Post date:** [July 12, 2013, 9:26am UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/5 "2013-07-12T09:26:44Z")
Hi, Indeed the execution is discretionnary but the spread selection process is mechanical. Thanks [LINKSYSTEM\_66262344] ---
**Author:** ![MrPVoodoo](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/mrpvoodoo/32/213_2.png) [@MrPVoodoo](https://forums.collective2.com/u/MrPVoodoo)\ **Post date:** [July 13, 2013, 5:05am UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/6 "2013-07-13T05:05:54Z")
Hmmm. Those could work very nice for futures too, (stocks obvious, compared to indexes). Just done some back testing based to silver/gold (maybe should add some results from backtest based to the next indicator: [http://pvoodoo.blogspot.com/2013/07/pvpairtradenormalizedi-indicator.html?view=flipcard](http://pvoodoo.blogspot.com/2013/07/pvpairtradenormalizedi-indicator.html?view=flipcard) ) - Marko Rantala / PVoodoo And maybe add that to my test portfolio… not for PV Silver: [LINKSYSTEM\_78062017] yet ---
**Author:** ![KevinMcGrath2](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/kevinmcgrath2/32/110_2.png) [@KevinMcGrath2](https://forums.collective2.com/u/KevinMcGrath2)\ **Post date:** [July 13, 2013, 1:31pm UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/7 "2013-07-13T13:31:11Z")
Yes, this is a solid but underappreciated trading strategy. I just opened a new system here on C2 to help folks do this with stocks - [LINKSYSTEM\_81983273]. I’ve been looking at pair trading for a while and think that it has some very real advantages for many traders - given that there are quite literally millions of possible combinations, the key is to figure out which pairs to trade and when. ---
**Author:** ![MatthewSlezak](https://avatars.discourse-cdn.com/v4/letter/m/e495f1/32.png) [@MatthewSlezak](https://forums.collective2.com/u/MatthewSlezak)\ **Post date:** [July 14, 2013, 11:17pm UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/8 "2013-07-14T23:17:43Z")
I would be very interested in a pairs trading strategy for futures. Would your stock trader work on futures? Do you happen to have backtest results (didn’t see them on your stock chart). Thank you! ---
**Author:** ![KevinMcGrath2](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/kevinmcgrath2/32/110_2.png) [@KevinMcGrath2](https://forums.collective2.com/u/KevinMcGrath2)\ **Post date:** [July 15, 2013, 8:04am UTC](https://forums.collective2.com/t/pair-trade-systems-underrepresented-at-c2/2090/9 "2013-07-15T08:04:55Z")
Well, you pick pair trades based on past successful performance, so a backtest is going to look mighty good but be meaningless. As to it working on futures, I can’t really comment. The system I just put here on Collective2 - [LINKSYSTEM\_81983273] - uses only EOD stock data so I can’t tell you how it might translate to futures.