Understanding a theory means Understanding it as an attempt to solve a certain problem -- Sir Karl Pooper

Simple ideas are usually very powerful. “Pairs trading” is based on one such simple but powerful idea which generated millions in profits for various firms. Morgan Stanley which first implemented this strategy and a host of other firms which copied this technique and made a lot of money. Pairs trading is based on 2 constructs : First, Any stock moves in a random way , however there is a systematic component to it and idiosyncratic component.

“Smile, breathe and go slowly.” -Zen

Consistency is the last refuge of the unimaginative. - Oscar Wilde

The intellectual effort in writing a medium sized program is probably comparable to writing a book, except you never need to debug a book! There is a joy to finding out new ways to make something happen, or solving a particularly thorny problem. - David Bolton