This is how I visualize pair trade on my other platform. It may look confusing , but it's actually very simple.
I use the Bollinger bands to measure standard deviation of a pair. When the ratio of the pair is at +/- 2.5 Std deviation( green lines I enter the trade. The correlation needs to be at least at 75 % + and co- integration at 70 % + .
I exit the trade when the ratio is above or below +/- 1 std deviation ( red line) .
See trade detail on chart.
Algo
I use the Bollinger bands to measure standard deviation of a pair. When the ratio of the pair is at +/- 2.5 Std deviation( green lines I enter the trade. The correlation needs to be at least at 75 % + and co- integration at 70 % + .
I exit the trade when the ratio is above or below +/- 1 std deviation ( red line) .
See trade detail on chart.
Algo