Pairs Trading

By Douglas S. Ehrman

Learn both the theory and practice of pairs trading, why it is consistently profitable, and how you can apply the strategies in your own trading with this valuable guide. Author Douglas Ehrman covers pairs trading involving stocks, options on stocks, and futures contracts, and explains how this type of trading allows you to profit from the changing price relationship of securities. In addition to a comprehensive discussion of the theories involved, he also includes practical examples that will to help you put what you've learned into practice. Douglas S. Ehrman is a hedge fund manager and a leading authority on pairs trading. He is one of the founders and the Chief Executive Officer of AlphAmerica Asset Management LLC in Chicago. He also served as the chief executive officer of AlphAmerica Financial, Inc., the company that operated PairsTrading.com prior to its merger with PairTrader.com.

• Format: Hardcover
• Language: English
• ISBN: 0471727075
• ISBN13: 9780471727071
• Release Date: January 2006
• Publisher: John Wiley & Sons
• Length: 272 Pages
• Weight: 1.05 lbs.
• Dimensions: 1.0" x 7.3" x 9.3"

Customer Reviews

Confused Reviewers

This book was recommended to me by a friend who knew that I was going to use it to trade myself. I liked the idea of pairs trading and needed some help. Unlike one of the earlier reviewers, I found other pairs books either way too technical or just hard to follow. That was not the case with this book. It walks through enough basics to be helpful, but not too much, and then gives a solid approach that I have been able to successfully apply. I found Ehrman's writing style very easy to follow and clean. It has made a big difference in my trading already. As to the author's fame (as mentioned by an earlier reviewer), he is a practicioner of his method. While PairsTrading.com no longer exists, it merged and is now PairTrader.com. There newsletters are very helpful and have helped to improve my trading as well. Anyway, hope this helps perspective buyers, particularly in light of some of the nay-sayers.

Exactly Right

When I first saw this book I was sceptical, but bought it anyway. I am so glad I did because it has unlocked for me a way to trade that consistently makes me money. I am a doctor and don't have a background in finance. This book was easy to follow and taught me how to approach the market. Since reading the book, I am finally making profitable trades; I'd be lost without it. Thanks...

Alchmey

For the first revier, who claims to apply wavelet and SDP that is not an invention since you can buy the code for Trade Station . Also Alchemy Research products for tradestation, have pairs trading that you can also copy and claim that you invented it.