The 47% Win Rate That Still Made Money
Most trading strategies chase high win rates. Pairs trading doesn't care. My bot hit 47% accuracy last quarter—losing more trades than it won—yet returned 12.3% after transaction costs. The secret isn't predicting direction. It's exploiting mean reversion between cointegrated assets, where even wrong entries eventually correct themselves.
But here's what tutorials skip: cointegration breaks. Constantly. The statistical relationship that worked beautifully in your backtest evaporates three weeks into live trading. I'll show you the complete pipeline—from finding cointegrated pairs to handling the moment your $z$-score screams "buy" but the spread keeps widening.
Why Most Pairs Selection Methods Fail in Production
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