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jonnysharp
Registered: May 2004
Posts: 980 |
08-26-08 12:02 AM
Thanks for your support yobo.
One trade today, a nice divergence between the ratio chart & RSI chart drew my attention to this pair.
Long POT @ 177.04
Short CF @ 146.85
Open Trades: 8
 cf-pot.gif
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Susannah
Registered: Jul 2005
Posts: 515 |
08-26-08 01:38 AM
Very interesting journal to me, thanks for doing it. Have you tried any software besides Pairtrade Finder, or was that the first you tried, and you're sticking to it? It seems there is some software out there for using Ninjatrader to evaluate pairs, but I'm just starting to work with Ninjatrader. Pairtrader seems to be at a good price if it works well.
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jonnysharp
Registered: May 2004
Posts: 980 |
08-26-08 02:27 AM
Thanks Susannah.
No I haven't tried ninjatrader, i was recommended pairtrade finder to me from another pair trader. and yes so far so good, ive paper traded it and came up with good results just trying to do the same in real time now. ive tried analysing trades in excel a few years back and failed, so I looked at a few programs but settled on pairtradefinder because as you say it was pretty cheap and does the job, it comes with a guide that gave me some ideas and ive built on them and designed my own trading plan with additional analysis to the program's signals.
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Bogan7
Registered: Aug 2006
Posts: 1690 |
08-26-08 02:37 AM
Quote from Susannah:
Very interesting journal to me, thanks for doing it. Have you tried any software besides Pairtrade Finder, or was that the first you tried, and you're sticking to it? It seems there is some software out there for using Ninjatrader to evaluate pairs, but I'm just starting to work with Ninjatrader. Pairtrader seems to be at a good price if it works well.
Hi as I am a nija user I would like to have a look at this software do you know where i can find it?
Regards
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GGSAE
Registered: Nov 2003
Posts: 711 |
08-26-08 04:38 AM
Quote from jonnysharp:
Thanks for your support yobo.
One trade today, a nice divergence between the ratio chart & RSI chart drew my attention to this pair.
Long POT @ 177.04
Short CF @ 146.85
Open Trades: 8
I'm a pairs trader (mean reversion mostly and intraday however I do trade all time frames). I also trade the fertilzers a lot - you really need to incorporate fundamentals. Legging into a position like this with size even if you think you're spread out with layers can be disastrous! These pairs have ATRs over 10 on a regular basis, be very careful! Many pair traders have blown their accounts trading these...
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jonnysharp
Registered: May 2004
Posts: 980 |
08-26-08 04:59 AM
GGSAE, appreciate the tip, I did notice that my CF/POT pair has the highest volatility(1.54%) out of all my open trades, and I did reduce my normal size for this trade, my trade size is 15% of my a/c value on this trade, so a 50% overnight drop in a stock would equate to a 7.5% decline in my a/c equity, I can handle that, but your right the fertilzer stocks have very high expected volatility as they could be coming to an end of a dream run over the past few years.
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