Overview: This script is designed for pairs trading. If you are not familiar with pairs trading, I suggest learning about it, as it can be a profitable strategy in neutral markets (or neutral trends between two assets). The correlation between two assets is the foundation of pairs trading, and without it, the chances of making a profit are low. Correlation can be...
Overview: This script combines multiple indicators to provide a comprehensive analysis of both trend strength and trend momentum. It is tailored specifically for pairs trading strategies but can also be used for other trading strategies. Benefit of Comprehensive Analysis: Having an indicator that evaluates both trend strength and trend momentum is crucial for...
Pair slope/hedge uses linear regression to calculate the hedge ratio (slope) between the two assets within a period. It allows you to specify a "from" and a "to" candle. Example: "A regression from 1000 candles back in time and ignore the last 100 candles. This would result in making a regression of 900 candles in total." The formula used to perform the...
An old but gold Japanese indicator for Mean Reverting strategies and ideal for Pairs Trading... The Kairi Relative Index measures the distance between closing prices and a Moving Average in percent value (generally SMA). Extreme reading in the KRI are considered buy and sell signals. Extreme readings will vary by asset, with more volatile assets reaching much...