Perhaps you should go back and read what I said. I made no comment about anything you've said in this thread...all i said is that you've made generalisations about pair traders. Would you like an example? http://www.elitetrader.com/vb/showt...perpage=6&highlight=pair trading&pagenumber=6 If this is not a generalization, please tell me what is.
When you are forced to attack the messenger, you have lost the argument. That's the take away here. Maverick had a problem with another trader implementing a very large, unleveraged trade that made 30 mm or so, and offered a risk reward ratio, on average, of greater then 2:1. I love monday morning quarterbacks. So, here is your chance. Would you please enlighten us on how Bob should have traded that position? Looking forward to your post. May I suggest you take some ritalin, sometimes you have problems focusing and keeping on point. As for Da Bears...I'm happy to see them back in the show. Given their recent performance, I'd hedge your bet. They just squeaked by Seatle....and Don't forget the beating the took from the pack. Should be a good game.
Mav spins more then a 90 pound, $20 hooker in Tiajuanna, let's see what he has to say.....Mav what say you?
I was referring to this thread. This whole thread was about the PVN trade, not about pair trading. I did not make any references to pair trading on this thread. Of course I have discussed pair trading before on ET. Don and I have discussed it for years. He knows I don't like the strategy but he has done well with it and that is all that matters. I'm still waiting for someone to post a pair trading reference from THIS thread. Good luck.
Well Mike, here is a crazy idea, why not just get out of the trade? Oh right, that would be the disciplined approach. See Mike, I don't believe in turning short term trades into long term investments. I don't believe in staying in a position when the market is telling me I am wrong day after day. I don't believe in throwing good money after bad. I don't believe in rationalizing my bad trades because I can't pull the trigger to get out. How is that for how I would have handled that? I'm sorry Mike, you are not going to convince many people here on ET it's OK to hold a position that has gone 75% against you!!!!!!!! Not going to happen. Go ahead, keep calling me names. You have the maturity level of a 5 year old. At least Don and I can talk about it like adults. Maybe you should stay out of this conversation and let the adults talk about it.
just in case someone wanted to see the charts on pvn heres a 5 year and a 20 year http://i12.tinypic.com/2im724z.gif http://i16.tinypic.com/4hutj02.gif
heres 15 year chart and it might not have anything to do with the trade because it was way before it but I saw it and thought maybe somebody might want to see what can happen if you anticipate the market using triangles and don't wait for a breakout to be confirmed, it sure looks like it was on its way to an upside breakout, higher lows bouncing off a trendline, consolidated for a good long time after that 8.00 to 70.00 run up and wham down she goes http://i18.tinypic.com/2m7aqli.gif
http://i14.tinypic.com/3y5emac.gif here it is before the crash riding a nice trendline , consolidating, bouncing off the center of the consolidation, 70-30=40 1/2 of 40 is 20 thats 50.00 the center line, had just bounced off it, if you had to guess which way it was going there was no reason to be negative, technically, I'm just saying watchout anticipating breakouts
I have nothing but respect for Bright Trading and Maverick-and no comment on any of their trades. They are successful, and share with us all an amazing amount. (Thanks-and thanks for the interesting chats which I downloaded...) However, just wanted to make a comment on the previous poster's chart: For me, the chart you posted is a sell. Since I trade futures, I'd be holding open the possibility of that failing through a certain point and allowing me to quickly sell short. I quickly pasted onto a simple jpg and included some simple examples of common patterns where market moves up in a burst. You can see they are completely different. Edit: I am also aware of the Ascending Triangle Pattern for stocks, but the chart of this stock is not sufficient for this pattern.