Global Connection Illustration

Helium Pairs Trader (HPT)

Pairs trading is a market-neutral trading strategy that matches a long position with a short position in a pair of highly correlated instruments such as two stocks, exchange-traded funds (ETFs), currencies, commodities or options. It enables traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement.

This strategy is categorized as statistical arbitrage and is a “mean-reverting” strategy i.e., betting that the prices will eventually revert to their historical trends. Pairing trading is also attractive because it is substantially self-funding, since the short sale proceeds may be used to create the long position.

Helium Pairs Trader (HPT) is an Excel-based implementation of classic pairs trading strategy. It is designed for simplicity and ease-of-use. Among its many benefits:

  • Employs everyday features of Excel. No unfamiliar, complicated system to learn
  • Easy-to-use transparent interface. You always see what happening.
  • Leverages Excel’s “openness”. Integrate any libraries, models or analytics that are compatible with Excel
  • Pair is specified by ratio and net cost, so the actual execution price of each symbol isn’t relevant
  • All orders and executions are easy to track and observe – as stated above, everything is very transparent
  • Parameter-driven implementation tunes the execution of the pair. Parameters may be global or pair-specific
  • User-specified trading tolerances control risk and maximize profits
  • Multiple pairs can execute simultaneously
  • Multiple portfolios can trade simultaneously, each in its own spreadsheet
  • “All Out” facility for immediate shutdown

© Mach2 Software, LLC. All Rights Reserved