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Implement a Pair Trading Strategy

Open ryanr08 opened this issue 3 years ago • 0 comments

This will be one of the more difficult strategies to start with. In more simple algorithms, the trading bot will either put all its money in the cryptocurrency or in USD. This can be inefficient because while the bot is waiting to buy, the USD is just sitting there not making any money. With pair trading, the algorithm should be able to have two oppositely moving coins so that the bot is always holding one coin and can constantly be making a profit. Generally, the mean reversion strategy can be used for this algorithm, with one method being using mean reversion on the difference in price of the two coins rather than one price itself. I would also recommend looking more into this strategy online.

ryanr08 avatar Dec 15 '21 02:12 ryanr08