I have been on and off this thread. I like the safety of pairs trading in exchange for lower returns. Are you scanning for these pairs manually?
I welcome this question. It is huge beyond what you could think. Can you post it at a location cited below for the following reason.... The purpose for the above cited, intended trade is explained elsewhere. In order to preserve the intent of this Charts of Note thread--having charts and self-explaining charts--any posts related to the pair trading involved in my charts are best referred to a pair trading thread where I am active. Narratives, discussions, questions and answers for my charts are perfect at and encouraged at the following threads: Pair Trading Strategy Journal (a primary one for me) http://www.elitetrader.com/vb/showthread.php?s=&postid=3785026#post3785026 OR Spread Trading Strategies http://www.elitetrader.com/vb/showthread.php?s=&postid=3785115#post3785115
This is trade in progress, day after recommendation. Chart posted here is a reference illustrating what a 1/2 percent change looks like on any 1 - day chart going forward. (For the uninitiated in pair trading, it also shows the trade's indifference to market direction for this relationship oriented trade; in this case a down market is irrelevant to the gain being made as the trade is exclusively devoted to the movement between two stocks.) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3817043>
A sequel (today's chart) from yesterday's chart theme of hedged pairs' indifference to general market direction and the pair's direction and slope. http://www.elitetrader.com/vb/showthread.php?s=&postid=3817949#post3817949
RAI Short PM Long A remarkable opportunity ? Chart posted while trading in session today. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3831224 >
Chart 2 RAI Short PM Long A remarkable opportunity ? Chart posted while trading in session today. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3831245 >