Pair trading is a stock strategy that involves buying both long and short stocks that share a high correlation. The point of pair trading is to neutralize risk and hedge against a positive or negative market trend.
The logic is that if the market increases, the long stock will do well. If the market declines, then money can be made on the short position.
PairTrade Finder is a leading stock trading software that is designed to help online traders find good stock pairs for trading. Our PairTrade Finder review will cover what PairTrade Finder is all about and help you decide if the trading service is right for you.
PairTrade can help you locate stocks with the potential to go short and long. This attempts to help you succeed no matter the market conditions. Pair trading is not a very common strategy. This means PairTrade Finder definitely fills a unique niche in the trading industry.
PairTrade Finder Review: Overview
PairTrade Finder is a leading stock tracking software application designed to help you identify pair trades for day trading. The platform has a massive store of real-time data on market trades. These include over 120 exchanges in more than 20 countries. Their catalog of tracked assets includes ETFs, stocks, CFDs, options, futures, commodities, and more.
PairTrade Finder came into fruition over 8 years ago via a team of developers. The developers all worked with some of the largest financial management institutions in the world. Those companies include Morgan Stanley, Salomon Brothers Inc, and GE Capital. To date, the service has sold over 2000 licenses worldwide and has more than 6,000 downloads.
PairTrade Finder uses its repository of stock data to provide real-time updates about pricing, entry times, exit times, and more. You can define fields for searching for pair trades and set up custom email alerts. These alerts notify you when a pair goes into the proper price ranges.
Additionally, you can test out your pair trading system against PairTrade Finder’s massive library of historical data. This can help you predict how profitable your system will be.
How Does PairTrade Finder Work?
Pair Trade Finder is a standalone software application that works on both Windows and Mac OSX devices. Once you download the program and launch it you will be asked to put in the license key. You receive this when you sign up for your particular subscription plan (more on those later).
Once you do that, you will be taken to the main hub where you start making your pair groups to keep track of. PairTrade Finder is highly customizable. However, it is not the easiest piece of trading software to use. Notably, it lacks the focus on visual presentation that a lot of stock screening tools and trading apps nowadays rely on.
The Group tool
The Group tool is the basic tool that lets you designate trade pairs to keep track of. When you go to make a new group, you select the stock exchange that the security is listed on. You then enter the ticker number so the program can recognize it.
You can get these stock ticker symbols Excel pages from the download page on the PairTrade website.
Once you make your first stock group, you can start doing back testing. Back testing is a tool that allows you to project your pair trading strategy over several years. This helps you get a rough idea of how it will fare.
PairTrade backtesting is based on over 10 years of historical data gathered from exchanges. Once you start backtesting, the trading program will help you identify good pairs to trade out of the previous group.
These are just the basic rules. You can further customize your groups and results so that the program recognizes profit margins on trading pairs, risk/reward ratios, and much more.
PairTrade has a lot of customization options as well. Once you become familiar with the unorthodox layout, it becomes very intuitive to use.
PairTrade Finder 15-day Free Trial Review
PairTrade Finder Pro is a paid software package but they offer a free 15-day trial so you can get acclimated to the software and decide if it’s for you. The 15-day free trial allows for every function the full program does.
This includes the grouping tool, charts, watchlists, and backtests. Once the free trial has expired, you must sign up for a subscription service to get a valid license key.
PairTrade Finder: 11 Trading Secrets Review
Also, PairTrade Finder has a current promotional offer that gives new uses a free ebook. The book has 11 different tips and strategies for pair trading software.
The ebook comes free when you get the 15-day trial. This means you can immediately take advantage of these tips without having to pay a single cent.
What’s Included with PairTrade Finder?
Here is a quick breakdown of the key features that come with PairTrade Finder.
- Pair Charts
- Back Tests
The Watchlist feature is what PairTrade Finder is known for. It includes the use of historical data to make projections about your pair trading software strategy. You can add whatever stocks you want to your watchlist.
The program will let you view and customize which particular metrics you are following. The watchlist contains vital information such as volume, volatility, and co-integration of each trading pair you designate to follow.
The Pair Charts are basically an alternate viewing mode for your Watchlists. They consist of charts that plot different stock pairs against each other so you can see micro and macro trends in the data.
The Pair Charts can make it much easier to see specific patterns in data. You can see how correlations hold over time, the RSI of the pair, and price ratios from one period to the next. The chart tool will probably look the most familiar to traders who have used other stock screening software packages.
Backtesting is another core feature of the program. This allows you to analyze the correlation between stock pairs over the past 10 years so you can see if it is a viable pair for future trading.
Through backtesting, you can discover trading pairs’ average correlation over time. You can also see the potential profit from trading those two stocks.
The backtesting tool is pretty thorough and allows you to change various fields, such as time frames.
PairTrade Finder Money-Back Guarantee Review
PairTrade Finder also offers a 30-day money-back guarantee. This is minus a 10% administration fee, after you make your first payment. When coupled with the 15-day free trial, you could potentially use PairTrade Finder for 45 days without having to pay.
You also do not have to pay extra for the securities data that you can download.
PairTrade Finder Review: Is PairTrade Finder Legit?
Yes, PairTrade Finder is indeed legitimate. They are a real company with a well-made software product. PairTrade Finder will not steal your money, nor will they steal your personal information.
The PairTrade software does not connect to your financial accounts, so nobody is able to steal your money either. PairTrade Finder is also very good about honoring its money-back policy and free-trial policy.
PairTrade Finder is also more than just legit, it is genuinely helpful. Technically, there is nothing in PairTrade Finder that you could not do yourself with Excel and some Google prowess. However, having all the modules in the same program that you can activate with just a click is extremely useful.
The service costs $55 a month which you can pay monthly or annually. That comes out to just over $600 a year. PairTrade Finder once came with a lifetime one-time payment option, but it is not clear if they still offer this option.
PairTrade Finder Review: Pros and Cons
- Very flexible software. Since PairTrade Finder is a software package and not a browser application, pair traders have a lot more control over what it does. Customizability options might seem intimidating at first. However, they open up new possibilities for pair screening and tracking.
- Backtesting with historical data. Perhaps the most unique feature with PairTrade Finder is the backtesting features. The Backtesting feature lets you compare pair trading data up to 10 years into the past so you can make future projections about your pair’s price movements. Backtesting can be set to modify the timeframe and other indicators.
- Chart mode is useful. The chart viewing mode is extremely helpful for comparing different trading pairs. Traders who are used to other kinds of stock screeners will feel instantly familiar with this tool.
- Generous trial and return policy. Through the 15-day free trial and the 30-day money-back policy, you can essentially try the platform for 45 days without having to pay. Note that if you ask for your money back, they will keep 10% for administrative fees. Therefore it’s not a true 100% money-back policy.
- Security. PairTrade Finder does not connect to your actual accounts so nobody can hack you and steal your money. Further, the program does not need internet connectivity to work. PairTrade Finder also requires very few personal details from traders to set up your account. Additionally, they do not sell information to third parties.
- The interface could be better. If there is one way to describe PairTrade Finder’s interface it is “out of date.” The tabular, Excel-style layout is organized and neat. However, it does look a bit rough around the edges. This is especially in comparison to some of the super-sleek stock screeners for online traders that are out there nowadays.
- Not very intuitive at first. If you are just starting with PairTrade Finder, it might be a bit difficult to figure out. You may also have to do some messing with the file types to make sure everything runs correctly.
- Difficult to export data to Excel. Despite the obvious Excel-inspired design, much of the data cannot be transferred to excel spreadsheets. This takes some workarounds. You can figure it out and do it, but our expectations are for them to make this option easier to do.
Is PairTrade Finder Right for Me?
Unless you are interested in pair trading software, then PairTrade Finder will probably not be of much use. However, if you want to delve into pair trading, then it can be a good option. This is especially true if you are a relatively new pair trader who needs help learning the ropes.
It can also be useful at helping you learn how to analyze charts for good trading pairs. Like we said earlier, you can do everything that PairTrade Finder does with some work and research skills. However, it makes things so much easier having a combination package that has all the tools and fields already available.
If you have experience in pair trading and already have some custom strategies and plans, then you may not get much out of the software. At the very least, you may be able to use PairTrade Finder as a jumping-off point for new trading strategies.
We would highly recommend the trading software for new pair traders. However, we don’t necessarily recommend the software for pair traders who have more experience.
At the end of the day, it comes down to the personal preference of traders. PairTrade Finder offers a pretty generous free trial and money back policy, however. So, at the very least you can try it out to see if you like it or not.
PairTrade Finder Reviews by Subscribers
PairTrade Finder has very good customer reviews. On the official website, they have a lot of positive testimonials from users. These testimonials don’t sound completely bogus either. The majority of reviews praise how the software is able to calculate so many alternatives to historical trends.
They claim that the software helps them make some good trades that are profitable. One customer claims that they used PairTrade Finder to make nearly $8,000 in a single week. While these are probably not typical results, it is pretty impressive.
One other thing that many reviewers put a focus on was the quality of customer service. The customer service team at PairTrade Finder seems knowledgeable, friendly, and helpful.
On another note, we noticed that the testimonial section on the official website does not have any negative reviews. Generally, we like to see at least a handful of those. This is because it indicates the company does not scrub their site of negative reviews to present a more positive image. Even the best products and services get a few negative reviews, so we are surprised that there are none.
Final Review: Is PairTrade Finder Worth It?
In summary, is the pair trading software worth it for traders with trading experience and professional traders? We say it depends. For online traders unfamiliar with the kinds of signals and resources used by pair traders, PairTrade Finder can help to find a good trading strategy that will have less risk.
PairTrade Finder offers a professional and profitable way to handle pair trading so you can minimize loss. It also helps traders to learn about the relationship between two stocks when. If you are looking for a new way to acquire capital and analyze trends in real-time through, then this trading screener for stocks and other securities is highly recommended.