Any statistical arbitragers inda house?

Discussion in 'Trading' started by WarwickGrad, Jun 2, 2007.

  1. looking into stat arb/pairs trading strategies...can anyone give me some guidance please, as i'm a begginer in this field

    thanks in advance
     
  2. anyone???
     
  3. basis

    basis

    It's not the kind of thing successful practicioners share info on.

    You can start with Vidyamurthy's _Pairs Trading_ book, though.
     
  4. i thought so, ive ordered that book and others, thanks dude

    does anyone think there's money in it? or is it too competitive for someone new to join?

    also, would an msc in statistics from a top uni help in the quest for arbitrage?
     
  5. What kind of statistics? Guassian stats have well known difficiencies in modeling financial markets, and fractal stats are still relatively new in terms of modeling financial markets. Maybe fractal stats will eventually do a better job, but I doubt it.
     
  6. Call Don Bright.
     
  7. whos don bright?
     
  8. WG, Stab Art (sic) is not confined to pair trading. Indeed that is considered a little "old-hat" these days - at least in the equities markets.

    In addition, once someone discovers a good game on wall street, everyman and his dog are doing it (i.e., pair trading, dispersion trading - moronically referred to as Vol Arb, etc). Thus although not impossible, it will be tough for you to do this (hey, just like trading in general).

    There are many other techniques employed these days, however good luck finding any info on such strategies. Most Stab Artists tend to be rather tight lipped about what they are doing in this field - and rightly so.

    Last but not least, any stats/maths/programming-skills would be beneficial for you as a trader in general (not just Stab Art). Don't know that you need an MSc in Stats - but then again it wouldn't hurt (don't know your background - what did you study at Warwick?)

    PM me if you need some help.

    Cheers, EQ.
     
  9. You could also read through this thread:

    http://elitetrader.com/vb/showthread.php?s=&threadid=92018

    It's recent, has participation by current and former pairs traders, and Don Bright -- who runs a prop shop where a number of pairs traders seem to be doing well currently -- chimes in as well.

    Best of luck.
     
  10. Midas

    Midas

    #10     Jun 5, 2007