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Pair Trading

OrganizationPopular
HKUDS
pair-trading

Pair trading strategy. Trades mean reversion using the spread/ratio Z-score of two correlated instruments. Requires at least two instruments.

Overview

PublisherHKUDS
RepositoryVibe-Trading
Skill namepair-trading
Stars
33.6K
Forks
5.5K
Bundled files
1
LicenseMIT
Links
  • Markdown instructions

    A SKILL.md file the model loads on demand, so it only costs tokens when a request actually matches.

  • Works with any LLM

    AI skills are plain Markdown, not provider-specific code, so this works with GPT, Claude, Gemini, Grok, or a local model.

  • 1 bundled files

    Scripts, templates, and references the model can read while it works. Files are read-only and never executed.

  • Open source

    Published by HKUDS on GitHub. Read the source before you install it.

Installation

Install the Pair Trading AI skill in TypingMind to use it with any LLM, or drop it into another agent that reads SKILL.md.

1

Install in TypingMind

TypingMind installs a skill straight from its GitHub folder — it reads SKILL.md, bundles the resource files, and stores the result locally.

  1. Open the app and go to Plugins → Skills.
  2. Choose "Install from GitHub".
  3. Paste the skill folder URL below and confirm.
  4. Enable the skill in any chat where you want it available.
Plugins → Skills → Add skill → From GitHub URL, then paste the folder URL and press Continue.
2

Install in another agent

Any agent that reads the Agent Skills format can use this skill — copy the folder into that agent's skills directory.

Claude Code — .claude/skills
git clone --depth 1 https://github.com/HKUDS/Vibe-Trading.git /tmp/Vibe-Trading
mkdir -p .claude/skills
cp -r /tmp/Vibe-Trading/agent/src/skills/pair-trading .claude/skills/pair-trading
Restart Claude Code after copying so it picks up the new skill.

Use it in TypingMind

Enable Pair Trading in any TypingMind chat and the model takes it from there. Its name and description sit in the system prompt, and the moment a request matches, the model loads the full instructions itself — you never invoke it by hand, and it costs no tokens until it is actually used.

The model loads Pair Trading on its own as soon as a request matches it.

Works with any AI model

AI skills are plain Markdown instructions rather than provider-specific code, so Pair Trading is not tied to the model it was written for. Install it once in TypingMind and use it with GPT-5, Claude, Gemini, Grok, DeepSeek, Mistral, Llama, or a local model you run yourself — all on your own API keys.

  • Loaded only when it is needed

    The system prompt carries just the name and description. The instructions are fetched on the first matching request, so an idle skill costs nothing.

  • Switch models mid-chat

    Because the skill is instructions rather than code, changing model does not break it — the next model reads the same SKILL.md.

Skill instructions

This is the SKILL.md content the model loads. Read it before installing — a skill is instructions your model will follow.

Pair Trading Strategy

Purpose

Select two highly correlated instruments (such as stocks from the same industry or BTC/ETH), monitor how far their price ratio (or spread) deviates from the mean, and trade against extreme deviations while waiting for mean reversion.

Signal Logic

  1. Compute the price ratio: ratio = close_A / close_B
  2. Rolling mean and standard deviation: mean = ratio.rolling(lookback).mean(), std = ratio.rolling(lookback).std()
  3. Z-score: z = (ratio - mean) / std
  4. Signal generation:
    • Z < -entry_z → long A, short B (ratio is too low, expected to revert)
    • Z > +entry_z → short A, long B (ratio is too high, expected to revert)
    • |Z| < exit_z → close the position (reverted back near the mean)

Implementation Notes

  • Pair trading requires exactly two instruments (codes array length = 2)
  • The first instrument is A (leg1), and the second is B (leg2)
  • Signals for A and B are opposite: when A is long, B is short, and vice versa
  • Equal-weight allocation only: A and B each take 50% of capital, with no precise hedge-ratio calculation

Parameters

ParameterDefaultDescription
lookback60Lookback window for mean and standard deviation
entry_z2.0Entry Z-score threshold
exit_z0.5Exit Z-score threshold

Example config.json

json
{
  "source": "tushare",
  "codes": ["601318.SH", "601628.SH"],
  "start_date": "2023-01-01",
  "end_date": "2024-12-31",
  "initial_cash": 1000000,
  "commission": 0.001,
  "extra_fields": null
}

Cryptocurrency version:

json
{
  "source": "okx",
  "codes": ["BTC-USDT", "ETH-USDT"],
  "start_date": "2024-01-01",
  "end_date": "2024-12-31",
  "initial_cash": 1000000,
  "commission": 0.001,
  "extra_fields": null
}

Common Pitfalls

  • codes must contain exactly 2 instruments, no more and no less
  • The date indexes of the two instruments must be aligned (use an inner join), otherwise the ratio calculation will be wrong
  • Before the lookback window is filled, Z-scores are NaN, so fill signals with 0
  • Do not generate same-direction signals for both A and B; pair trading is fundamentally a long-short hedge

Dependencies

bash
pip install pandas numpy

Signal Convention

  • Instrument A: 0.5 = long, -0.5 = short, 0 = flat
  • Instrument B: direction is opposite to A

Bundled files

The model reads these on demand while the skill is loaded. They are exposed as readable files and are never executed.

Frequently asked questions

What does the Pair Trading AI skill do?

Pair trading strategy. Trades mean reversion using the spread/ratio Z-score of two correlated instruments. Requires at least two instruments.

Why use Pair Trading on TypingMind?

Because you install it once and use it with any model. Pair Trading is plain Markdown rather than provider-specific code, so the same skill runs on GPT-5, Claude, Gemini, Grok, or a local model — and you can switch model mid-chat without it breaking. TypingMind runs on your own API keys, so you pay providers directly instead of a per-seat subscription, and your skills and chats stay in your own storage.

How do I install Pair Trading in TypingMind?

Open Plugins → Skills → Install from GitHub in TypingMind and paste https://github.com/HKUDS/Vibe-Trading/tree/main/agent/src/skills/pair-trading. TypingMind reads its SKILL.md and bundles its files and installs it as a skill you can enable per chat.

Which AI models can use Pair Trading?

Any model you connect in TypingMind. AI skills are plain Markdown instructions rather than provider-specific code, so GPT, Claude, Gemini, Grok, and local models can all load this skill when a request matches it.

How many AI models can I use with Pair Trading?

As many as you like. As long as a model supports skills, you can use Pair Trading with it — GPT, Claude, Gemini, Grok, DeepSeek, Mistral, Llama and more — all on TypingMind with your own API keys.

Is the Pair Trading AI skill free?

Yes. It is published on GitHub by HKUDS under the MIT license. You only pay your own AI provider for the tokens you use.

What are AI skills?

An AI skill is a reusable instruction bundle that teaches an AI model how to do one specific task. It follows the open Agent Skills format: a SKILL.md file with a name and description, plus any scripts, templates or reference files the model may need. The model reads the instructions only when your request matches the skill, so an installed skill costs nothing until it is used.

How are AI skills different from plugins or MCP servers?

A plugin or MCP server gives a model new tools to call — code that runs somewhere and returns a result. An AI skill gives the model knowledge and process instead: how to approach a task, which steps to follow, what good output looks like. Skills are plain Markdown, so they need no server, no API key and no runtime, and they work with any model.

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