Hi Admin,

Just want to say first off, congrats, what a fantastic tool you have created and what a brilliant resource. I can only applaud you here, truly,

Secondly, I have some questions regarding clarification of some statistical terms; I have studied mathematics at University but never applied it to trading in this way, so if possible could I have clarification on the purpose of these tests and their significance? I apologise in advance if these seem very infant queries, but I have been searching the web for answers for days and am hoping you may be able to help!

1) Orthogonal regression (I can see regression co-efficient of alpha and beta, but why are these relevant?

What does the mean reversion co-efficient represent? What is the value we would want to see? And why the half life?)

2) What exactly is the autocorrelation PACF graph showing us (not understanding the 'lag' axis).

3) Engle Granger Co-integration test I understand, but why do we see the squared values of the regression, what should we be looking for here?