Pair Trading Lab Helpdesk & Forum

Pair Trading Lab => Questions & Answers => Topic started by: Douglas Goullet on March 16, 2015, 11:26:40 am

Title: Z-score question
Post by: Douglas Goullet on March 16, 2015, 11:26:40 am

Is the Z score the standard deviation trigger? So if in my Ratio system I use Standard deviation at 2.5, my Z score will trigger the trade at =<-2.5 or => 2.5, correct? Thanks.

Title: Re: Z-score question
Post by: admin on March 16, 2015, 12:28:22 pm

Yes, correct. You can see detailed explanation at the Wiki. For uptick and downtick modes the Z-score of previous day matters too.

Title: Re: Z-score question
Post by: Douglas Goullet on March 16, 2015, 12:47:53 pm

thank you.