Native Pair Trading

  1. Pair trading is about always opening 1 Long and 1 Short together

  2. The long is on the asset that will perform better than the Short one.

  3. Benefit? If the market crashes, you will benefit from the short; if the market pumps, you will benefit from the long. No matter what the market does, you will win if the Long does better than the Short, or crashes less than the Short.

  4. It is easier to compare 2 companies and who will do better, than to study macroeconomy.

  5. Example of diversification strategy with pair trading.

  1. PIO integrates natural pair trading: asset names should follow the structure "crypto.BTCUSD/stock.nasdaq.AAPL" or "forex.GBPUSD/forex.EURUSD".

  2. Where the first asset is the long asset, and the second asset is the short asset. All the infrastructure is compatible with that naming convention.

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