eshan-kaul/PairsTrading-Crypto
An emerging asset class, the recent surge of popularity in crypto markets has made cryptocurrencies an essential part of investment portfolios for retail and institutional investors. As prices for cryptocurrencies continue to break previous highs, the race is on for investors to develop a trading strategy that can take advantage of the high volatility and fluctuation that exists in the crypto markets. The pairs trading strategy is an example of a market-neutral strategy that attempts to take advantage of the mean reversion principle to eliminate inefficiencies between two highly correlated assets. In a market that is riddled with inefficiencies, the pairs trading strategy might be a highly effective and lucrative trading stagey for investors in crypto markets.
This project helps cryptocurrency investors develop and apply a pairs trading strategy. It takes historical price data for two highly correlated cryptocurrencies and identifies trading opportunities based on their mean reversion. The output helps traders make decisions about when to buy or sell to profit from temporary price inefficiencies. This is designed for retail and institutional investors in crypto markets.
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Use this if you are a crypto investor looking for a market-neutral strategy to profit from the inherent volatility and inefficiencies between highly correlated digital assets.
Not ideal if you are looking for long-term HODL strategies or trading single cryptocurrencies without considering relative asset performance.
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Last pushed
Jan 22, 2023
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