Follow Pair

How to choose pairs?

• Choose stocks from same sector/subsector.

Extra tip: Use stock with large market capitalization as first stock.
Good pairs: Here is a list of pairs chosen analytically.

NIFTY - EXIDEIND

Slope: 0.0227 Confidence: 99.6%
Data Time Frame: 6months
EXIDEIND = 0.0227 * NIFTY
Technical strength of NIFTY is 8.1. (Levels)
Technical strength of EXIDEIND is 7.9. (Levels)
End-of-day divergence (Standardized residual) is 0.147.
Half life of pair is 17.8.
Mean error is 0.0355. Standard error is 8.1.
Real time divergence is 0.142.
Divergence is calculating using following formula: (exideind_price - 0.0227 * nifty_price - mean_error)/standard_error

Recommendation

Take positions when divergence becomes (+/-)1.5. And exit positions when divergence becomes (+/-)0.0.
Stop Loss: Put your stop loss when divergence becomes more than 2.0 or less than -2.0. We suggest you always use stop losses.

Click here for backtesting results.