Financial Analysis - Build a ChatGPT Pairs Trading Bot - Testing the Strategy

The video tutorial walks through debugging a trading algorithm. Initially, the code is rerun to check for issues, revealing a problem with the trading signals. The instructor identifies a bug related to the normalization of the spread and bounds, leading to incorrect signals. By removing unnecessary normalization, the algorithm is corrected, resulting in improved performance and returns. The tutorial concludes with a demonstration of the corrected algorithm's results, showing a more logical switching between long and short positions.

What was the initial observation that led the speaker to double-check the code?

Explain the significance of the Z score in the context of the trading strategy discussed.

What was the problem identified with the upper and lower bounds in the spread analysis?

Describe the mistake made regarding the normalization of the spread.

What changes were made to the algorithm after identifying the bug?

How did the position switch between long and short in the trading strategy?

What does the speaker mean by saying the spread goes above the upper bound and below the lower bound?