TCS - OFSS Pair Analysis

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End-of-day divergence (Standardized residual) is -2.63.
Half life of pair is 2.06.
Real time (live) divergence is calculating using following formula:
[ofss_price - (1.5 * tcs_price) - 4.24]/133

(where 4.24 is mean error and 133 is standard error)
Technical strength of TCS is 6.7. (Support & Resistance)
Technical strength of OFSS is 4.5. (Support & Resistance)
Recommendation
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Entry Criterion: Take positions when divergence becomes (+/-)2.0. And exit positions when divergence becomes (+/-)0.
Stop Loss: Put your stop loss when divergence becomes more than 2.5 or less than -2.5. We suggest you always use stop losses.
Note: When you trade in futures, keep in mind the expiry date of futures as divergence might not end before expiry date.
Click here to see all recommendations for pair tcs-ofss.
Analyse any other pair:

How to choose pairs?
Choose stocks from same sector/subsector.
Use stock with large market capitalization as first stock.
Here is a list of pairs chosen analytically.

Charts

TCS Futures - NSE
Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
January 25, 2018 2906.45 7292000.0 7670.0 8767.0 2918.2
February 22, 2018 2917.85 461500.0 785.0 1079.0 2918.2
March 28, 2018 2935.0 2750.0 2.0 2.0 2918.2
Lot size: 250.0.

OFSS Futures - NSE

Expiry Date Close Price Open Interest Number of Trades No of Contracts Underlying Closing Price
January 25, 2018 4032.2 103800.0 126.0 143.0 4026.65
February 22, 2018 4050.0 1200.0 4.0 4.0 4026.65
Lot size: 150.0.
Click here for backtesting results.

TCS-OFSS Analysis with different time frames and thresholds

Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 3, Total Profit 82836.3243159
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2, Total Profit 78219.0796837
Time Frame 1month, Entry Threshold 1.5, Stop Loss Threshold 2.5, Total Profit 73308.1113727
Time Frame 3months, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 65051.7530778
Time Frame 1month, Entry Threshold 2, Stop Loss Threshold 2.5, Total Profit 60946.891113