CL contributed the order book pressure strategy. Disclaimer: All investments and trading in the stock market involve … It is based on the trading opportunities that arise due to the price inefficiencies and misquoting of the price of the securities. JS Liao and PY Chen (2001) develop a learning classifier system to adapt to changing market environments under the assumption that the stock market is semi-structured, non-linear and non-stationary. Share: Permalink. Access this project which is based on 'Pair Trading – Statistical Arbitrage On Cash Stocks' and is coded in Python by Jonathan Narváez as part of the EPAT coursework at QuantInsti and also contains downloadable files. Trading (HFT) with Statistical Arbitrage strategies. A strategy conceptualized as a diversifier for an existing suite may well have different business objectives from a strategy designed to enter a new market or replicate published research or take advantage of a transient market opportunity. Pairs trading: the history Pairs trading is one of the most popular investment strategies. Learn how it is leveraged by investors and traders seeking profits. There is little sign of subsequent ,reversals in returns, suggesting that positive feedback trading cannot account for the profitability of momentum strategies.