Beta Coefficient in Pairs Trading | Potential Application in Position Sizing and Speculation

A wizard asked in the last video talking on the Kalman Filter, to cover more on position sizing and coefficients. Well, this felt like a great idea so in this video we are talking about the Beta Coefficient and how it is a great measure of how one assets direction, volatility and risk as compared with the market or a base asset can be put to some use in statistical arbitrage.
We also cover the difference between this and the volatility ratio.
Be careful in how you approach position sizing and take backtesting with a pinch of salt.
website: cryptowizards.net

[@s1dev]

I'm new here your content feels like gems. Could you suggest me where I can learn more about cointegration? more about what the z-value p-value, t-value, c-value mean? how it actually works (could be the math, more indepth info on them)

[@CryptoWizards]

Sure, this should be a good starting point: kzbin.info/www/bejne/baapYoeDaahnrassi=EPMGABqBPQa9K9bQ

[@ArunSharma-ek9tl]

Is it possible to automate some of this to an actual trade.

[@AwesomeVideosReddit]

hi, would add function for us to connect with forex terminal/broker account so that we can trade directly?

[@CryptoWizards]

Am hoping to get there. A lot of legalities come into play as we are registered in the UK. If we grow enough, should be able to do this.

[@AwesomeVideosReddit]

@@CryptoWizards cool let me know if you want to get on a free consultation call, we run a consulting firm where we help online business owner to do restructuring for better tax planning and legal reasons :) ps. pls ignore my spammy account.

[@stanislav8036]

Hi there! Thanks for sharing this video. Well I have to pass first Triangular Arbitrage Course I bought on a Udemy. Then check this video again. Maybe I am a bit stupid, but I can not understand how you can earn money on a crypto with this you presented in this video?

[@CryptoWizards]

Fair point. This video just shows some extra information for pairs trading. It is not a game-changer. The game-changer is the statistical arbitrage approach in crypto. Will be doing another video soon to cover it in a one-covers-all video. BTW - some new content on triangular arbitrage will be coming out too.

[@stanislav8036]

Thanks. First I will pass the course for triangular arbitrage. Hope there is a choice to earn some money. @@CryptoWizards

[@s1dev]

cool! @@CryptoWizards