Implementing a Pairs Trading Strategy in Python: A Step-by-Step Guide

The Python Lab
10 min readMay 5, 2024

In this article, we will explore the implementation of a pairs trading strategy in Python. Pairs trading is a popular strategy in algorithmic trading that involves taking long and short positions in two correlated assets to profit from the relative price movements between them. We will provide a step-by-step guide on how to build and execute a pairs trading strategy using Python.

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The Python Lab

Discovering the power of algorithms in Python. Exploring ML, AI, and Deep Learning. Data-driven trading strategies.