© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023
P. LiuQuantitative Trading Strategies Using Pythonhttps://doi.org/10.1007/978-1-4842-9675-2_10

10. Pairs Trading Using Machine Learning

Peng Liu1  
(1)
Singapore, Singapore
 

Machine learning can be used in pairs trading in several ways to improve the effectiveness of trading strategies. Examples include pair selection, feature engineering, spread prediction, etc. In this final chapter, we are going to focus on spread prediction using different machine learning algorithms in order to generate trading signals.

Machine Learning in Pairs Trading

As discussed in the previous chapter, pairs trading is a type of quantitative trading strategy that involves transacting ...

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