Build a Super Advanced Trading Bot on DYDX Hosted on AWS with Python - Trading the Spread Based on Z-Score

The video tutorial explains pairs trading, focusing on the concept of spread, which is the difference between two assets adjusted by a hedge ratio. It details how to go long or short on the spread using examples with QNT and XRP. The Z score is introduced as a measure of how stretched the spread is, indicating when to enter or exit trades. The tutorial covers calculating the Z score and its application in trading strategies, including backtesting results. A practical strategy using a Z score threshold of ±1.5 is demonstrated, highlighting the risks and potential returns of statistical arbitrage.

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