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Pain Points in Pairs Trading and the Quest for Relevance

Joined
1/5/24
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hey algo community and professionals

I am presently conducting research on pairs trading strategies, exploring their applications, and delving into broader issues related to them. Additionally, I am investigating the methods employed in the search for co-integrated pairs in the crypto space using the network science approach.

I would greatly appreciate your feedback or ideas on individuals I can connect with to gain further insights into this topic.

The problems I am currently exploring include the hypothesis that if truly effective pairs are identified and issues such as transaction fees and spreads are resolved, among others not mentioned here, this strategy could potentially become more usable.

Respectively, I am endeavoring to understand the direct reasons and facts behind why this strategy has lost its relevance and is no longer widely discussed. Your input on this matter would be highly valuable.

We are currently a five-person team consisting of two mathematicians with Ph.Ds specializing in network science. This means that we have some resources that we can direct to test any ideas or problems related to pairs trading.

Ideally, we would like to find and establish cooperation with algo traders/quants who use such a strategy but have encountered specific problems that could potentially be solved or maybe recommend abandoning this idea to save time.
 
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