Power Cycle Trading – Pairs Trading Course – Larry Gaines

Fundamentals of a Pairs Trade

Learn how to identify, select, and execute the best pairs for trading with this step-by-step guide.

Step 1: Sector Tracker – Identify Sectors & Stocks Moving with Momentum

✅ Use tools to track sectors and stocks showing strong momentum.
✅ Focus on sectors with high potential for price movement.

Step 2: Check Correlations (Correlation Tracker & Sector Charting)

✅ Analyze correlations between stocks using a correlation tracker.
✅ Use sector charting to identify pairs with strong historical relationships.

Step 3: Scanning for Volatility Momentum Breakouts – Building a Watchlist

✅ Scan for volatility momentum breakouts to identify potential trading opportunities.
✅ Build a watchlist of high-potential pairs for further analysis.

Step 4: Trade Execution & Using Synthetic Options

✅ Execute trades using synthetic options to hedge risk and maximize returns.
✅ Implement strategies to enter and exit trades at optimal points.

Step 5: Profit Take – Momentum Reversal & Legging Out

✅ Monitor for momentum reversals to lock in profits.
✅ Use legging out strategies to exit positions gradually and maximize gains.