What we are looking for is a high degree of linearity in each pair trade as well as a consistent P&L.
The best bets are those signals generated with an AP P&L Status...these are signals where the P&L line is currently above the 6 month RSQ linear regression line and rising.
Note that these are results based on a 6 month lookback and no limit stops are applied.
MOD examines potential market momentum (no mean reversion here) based on data-driven z-score studies of volatility standard deviations for each pair.
MOD and M1 analyze the current market milieu using radically different parameters and algorithms and the value of using both platforms in concert is to increase the reliability of single position odds (in this case TLT). One interesting feature of MOD is that we can quickly create multiple baskets of pair studies to confirm and validate a single positions odds.
