EXCLUSIVE VIDEO - How to Pair Trade (Patreon)

Jacob explains the concept of Pair Trading plus how to do it with Optimized Trend.

Here are the top 5 technical analysis (TA) lessons - and he also showcases a simpler approach on how I turned $200K into $1M in 155 days in a tax free account.

1. Use Ratio (Pair) Charts Instead of Traditional Price Charts for Pair Trades

Use pair charts (e.g., MSTR/TSLA) on TradingView or other platforms to analyze the relative strength between two assets.

Remember: the asset on top (numerator) dominates the interpretation. For example, MSTR/TSLA rising means MSTR is outperforming TSLA.

What not to do:

Don’t use standard price charts of the individual stocks for pair trades — it’s about relative performance, not absolute price action.

Avoid confusion with correlation tools like PTOS, which aren’t meant for non-inverse relationships like MSTR vs TSLA.

2. Follow the Optimized Trend Indicator on Lower Timeframes

What to do:

Use the 1-hour chart with the Optimized Trend overlay to capture actionable signals.

Buy the asset on top when the trend turns blue (uptrend = top asset is stronger).

Sell and rotate into the bottom asset when the trend turns orange (downtrend = bottom asset is stronger).

What not to do:

Don’t treat this like scalping or day trading — each leg typically lasts 2–4 weeks.

3. Execute Ratio-Based Switching to Grow Position Size Over Time

What to do:

Track the ratio values at trade signals (e.g., 1.2, 1.0, 1.35) and simulate how many shares you could acquire by rotating.

Use a spreadsheet to track gains — starting with 100 shares, the speaker shows how one could grow to 162+ shares over 8 weeks by rotating.

What not to do:

Don’t focus on dollar profits; instead, focus on accumulating more shares over time — the primary benefit of pair trading.