A Course On Statistical Arbitrage (Pair Trading)
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Instructor: Kundan Kishore
Enrolled Learners: 494
Validity Period: Lifetime
₹9500 including 18% GST
- One to one handholding for all practical assignments and backtesting.
- Concept building by recorded lectures. (Lifetime access)
- Live discussion on theoretical and philosophical aspects of the course.
- Live doubt session on all topics covered in the course.
- Three months of live market support with paper trade alerts.
- Lifetime access to the alumni group. (400+ active members for now)
How I Started Pair Trading -
Q:- How much is a Billion Dollar in terms of Rupee?
A:- At the current rate of conversion, it is approx 7200 Cr.
Q:- Can this be one year salary of one individual?
A:- Yes! The 25 highest-paid hedge fund managers made a record $32 billion in 2020.
Now, let me tell you the story of one such hedge fund manager!
His name is D.E.Shaw.
When I joined Morgan Stanley in 2009, I read about many Ex-Morgan Stanley employees who did wonders in Investment Banking. But, I got highly impressed by two of them. One was Mr Vikram Pandit, and another was Mr D.E Shaw.
Mr Pandit joined Citi Bank at 1 rs salary and saved Citi after the 2008 financial crisis. When he became CEO of Citi, it was a proud moment for every Indian banker.
D. E. Shaw was one firm visiting our BITS Pilani campus for hiring computer engineers for their Hyderabad IT office. So, I researched this company once in the past as well.
But, now, I started digging deeper. And I started searching for his work during his Morgan Stanley days. This was the first time I got to know about the "Statistical Arbitrage" trading strategy, which is also commonly known as Pair Trading.
This was one trading strategy that was very easy to backtest. Results were tremendous. And, it was way back in 2010.
Well, the good news is results are still phenomenal. Backtested data of 20+ more pairs even show a return of anything between 30% to 100%. And with exceptions defined, even this result can be higher. And with few more exceptions, we can have up to 50+ pairs in India where we can trade profitably.
So far, I have trained 200+ traders on these strategies. Looking forward to training more traders to join my three months course on "Statistical Arbitrage."
And yes, we can train anyone. A person with no trading/investing background, as well.
Ask more questions in the comment section about this trading program, and I will be more than happy to answer them.
Hi. I am Kundan. A proud Indian. I was born and bought up in Bodhgaya, Bihar. I did my schooling in Kendriya Vidyalaya. Later, I joined BITS Pilani in 2001 and studied computing and finance. Maths, Economics, Computing and Finance is my life. After BITS Pilani, I worked for ten years with Citi bank, RBS, Morgan Stanley and Barclay capital. In 2014, I took retirement from corporate life. Post-retirement, I am managing my own money and spreading financial awareness among fellow Indians. I want to be remembered as a good teacher and a selfless person.
Refund Policy - No Refund
|Video lecture 18:00|
|Class 1 - Introduction To Trading|
|Video lecture 13:00|
|Class 2 - Concepts of behavioural finance|
|Video lecture 15:00|
|Assignment 1:- Z Score sheet and Backtesting|
|Assignment 2:- Correlation MATRIX using Python formatted (14:00)|
|Assignment 3:- ADF Testing using Python (10:00)|
|Class 3 - History of Pair trading|
|Class 4 - Concept of market neutral trading strategies|
|Class 5 - What is arbitrage?|
|Class 6 - Types of arbitrage|
|Class 7 - What is statistical arbitrage?|
|Class 8 -Pair trading in stocks|
|Class 9 - Pair trading in other financial instruments|
|Class 10 - Steps involved in statistical arbitrage|
|Module 2 - F&O, Statistics, Maths, excel and software for pair trading|
|Class 11 - Mean reversion principal in trading|
|Class 12 -What is a correlation?|
|Class 13 - What is a co-integration?|
|Class 14 - What is the moving average?|
|Class 15 - What is the standard deviation?|
|Class 16 - What is Z-score?|
|Class 17 - What is the bell curve?|
|Class 18 - What are futures and options?|
|Class 19 - Important excel functions for pair trading|
|Class 20 - Python installation|
|Module 3 - How to select the pair?|
|Class 21 - Selecting pairs fundamental way|
|Class 22 - Selection of pair in a mathematical way|
|Class 23 -How to generate a correlation matrix in excel?|
|Class 24 -Generating correlation using a python code|
|Class 25 - ADF testing to confirm the pair|
|Module 4 - Generating trade signals|
|Class 26 - Defining the trade signal area based on the Z score|
|Class 27 - Backtesting the signals for profit and loss|
|Class 28 - Establishing signals with different profit targets|
|Module 5 - Risk management and trade management|
|Class 29 - Types of risk in pair trading|
|Class 30 - Use of options in risk management|
|Class 31 - Efficient margin usage in the Indian market for high-value pairs|
|Class 32 - Trade execution standard practice in manual trading|
|Class 33 - Pair trade portfolio and trade management|
|FAQ on Pair Trading|
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