ETH/BTC pairs (z-score)
Statistical arbitrage when the ratio's z-score exceeds ±2. It's cloned turned off in your practice account so you can review it before turning it on.
How it works
- 1It triggersAccording to its frequency: 1 h.
- 2It reads the dataPrices and signals for ETH/BTC.
- 3It evaluates the ruleStatistical arbitrage when the ratio's z-score exceeds ±2.
- 4It acts and notifiesIt trades in practice or sends you the alert, depending on the template.
About this strategy
Pairs trading looks for two assets that usually move together and trades when they drift apart more than usual, betting that they return to their normal relationship. ETH and BTC are a classic crypto pair.
The template computes the ETH/BTC ratio and its z-score: how many standard deviations it has moved from its recent mean. Above +2, ETH is expensive relative to BTC; below −2, it’s cheap. The bot takes a position in that direction and exits when the z-score returns to zero.
Its risk is that the relationship between the two assets changes for good (a regime change). That’s why it includes a stop if the z-score keeps widening past a limit.
The workflow
Click a node to see what it doesCustomize it before cloning
What you'll receive
Questions about this strategy
A measure of how far a value is from its mean, in standard deviations. A z-score of 2 means the ratio is two standard deviations above normal.
No. It’s statistical arbitrage: it relies on a historical relationship holding, and that can break.
Yes, any pair of correlated assets. Check with a backtest first that the relationship is stable over the period you care about.
It's cloned in practice. Try it for a few weeks and move it to real money only if you're convinced, with your risk limits.
Learn before you switch it on
- How to backtest a trading strategy without fooling yourselfWhat backtesting is, how to test a trading strategy on historical data and the mistakes that inflate results: overfitting, look-ahead bias, fees and slippage.
- How to build a trading bot without codingA step-by-step guide to building a trading bot with no code: turn your strategy into rules, backtest it and run it on paper before you risk real money.