Easy Pairs Trading Scalping Strategy

Discussion in 'Automated Trading' started by CyborgTrading, Oct 3, 2009.

  1. CyborgTrading

    CyborgTrading ET Sponsor

    Well...I guess part of the problem here is that you really have no idea what you are talking about....and clearly you have no idea what we do.

    Cyborg is a trade management tool....that is combined with DISCRETIONARY trading...it's NOT a black-box trading system.

    Unfortunately I'm not a mind reader...so it would be impossible for me, or anyone else to know when/how you use a Cyborg strategy...
     
    #11     Oct 4, 2009
  2. Your system does not work at anything less than a daily level, because the "magic number" that represents a deviation large enough away from fair value to exploit is not sufficiently large enough to overcome situations where it keeps trending against you. Pairs trades are not intraday scalps. They are daily scale swing trades. And you want to use perfectly negatively correlated pairs, not spy and sso, but sds and sso, likewise for QID and QLD.

    See my thread if you want a more in depth explanation.

    Pairs Trading QID QLD Scalper is the best pairs trading system in the world, with the following results at 96% of equity from QID and QLD's inception 6/16/2006:

    Long + Short
    Starting Capital $100,000.00
    Ending Capital $637,853.61
    Net Profit $537,853.61
    Net Profit % 537.85%
    Annualized Gain % 77.71%
    Exposure 24.06%

    Cash Interest $0.00
    Margin Loan Interest $0.00
    Total Commission ($1,240.00)
    DividendsPaid $0.00

    Number of Trades 78
    Avg Profit/Loss $6,895.56
    Avg Profit/Loss % 2.56%
    Avg Bars Held 2.62

    Winning Trades 58
    Winning % 74.36%
    Gross Profit $902,221.06
    Avg Profit $15,555.54
    Avg Profit % 4.74%
    Avg Bars Held 2.79
    Max Consecutive 9

    Losing Trades 20
    Losing % 25.64%
    Gross Loss ($364,367.44)
    Avg Loss ($18,218.37)
    Avg Loss % -3.76%
    Avg Bars Held 2.1
    Max Consecutive 4

    Max Drawdown ($125,159.69)
    Max Drawdown Date 8/17/2009
    Max Drawdown % -17.45%
    Max Drawdown % Date 8/17/2009

    Wealth-Lab Score 266.6894
    RAR 323.063
    Profit Factor 2.4761
    Recovery Factor 4.2973
    Payoff Ratio 1.2596
    Sharpe Ratio 2.0187
    Ulcer Index 5.0002
    WL Error Term 6.213
    WL Reward Ratio 12.5084
    Luck Coefficient 3.4036
    Pessimistic Rate of Return 2.5933
    Equity Drop Ratio 0.0438


    Feel free to post your results if you want a side by side comparison.
     
    #12     Oct 4, 2009
  3. CyborgTrading

    CyborgTrading ET Sponsor

    Well this system is designed to work at a daily level (milliseconds). Get in and out as fast as possible....

    And yes...perfectly correlated pairs (or inverse)...is obviously best....I was just giving some examples of highly correlated pairs.

    Does that change your opinion of it?
     
    #13     Oct 4, 2009
  4. Dreamers

    Dreamers

    caught you in a lie

    Cyborg is used for testing back and forward

    and every little detail ends up in Cyborg main server

    Here is email from BEN
    _______________________
    My name is Ben, I am your first point of contact at Cyborg Trading.

    With Cyborg Groups you can shares strategies at your discretion either publicly or privately.

    _______________________

    and you expect people to believe that sharing with Cyborg mother server is not being done

    you'll find real traders to be smarter than average buddy

    you are new you don't know that yet
     
    #14     Oct 4, 2009
  5. CyborgTrading

    CyborgTrading ET Sponsor

    If you don't want to share a strategy, thats up to you....All strategies are stored on your local HD, so in the end if you are paranoid about anyone seeing your risk management strategies then don't share it...

    But your still missing the point. Even if I could see your Trade management strategy it's USELESS to me or any other trader...

    It's only one small piece of a trading strategy, and you can use a risk management strategy in a million different ways. It's almost like giving someone a key, without telling them which door it'll open.
     
    #15     Oct 4, 2009
  6. Dreamers

    Dreamers

    NO you are missing the point and I will spell it out for you

    I DO NOT TRUST YOU AND YOUR WORDS

    why do you even have built in sharing

    what ? you think real traders are share loving bunch ?

    you make me laugh

    good luck going over the collected code of Noobs (your only customers), it will get you nowhere


    I'll help your business out, here's a tip, REAL trader's main concern is security

    make them really think security is tight and you'll be able to get a real trader to spy on :cool:

    See I just helped you a lot
     
    #16     Oct 4, 2009
  7. CyborgTrading

    CyborgTrading ET Sponsor

    Well...lotsa other programs have the ability to share strategies. Trade-Ideas for instance has something called collaboration....Some traders like working together as a team...maybe you've never worked in that kind of trading environment before.
     
    #17     Oct 4, 2009
  8. Dreamers

    Dreamers

    you are by no means the first one collecting information on traders

    I always find it fascinating how people like you (software jockeys) assume you'll get good strategy by sheer numbers

    you always underestimate successful traders

    if they are smart enough to outsmart Goldman and others in ES and other futures markets

    why would they fall into a simple trap some software jockey set up for them

    don't underestimate a successful trader in today's market

    good luck
     
    #18     Oct 4, 2009
  9. you either a) trade extremely highly correlated pairs and get eaten by commission and slippage on the retail side or b) you trade highly correlated pairs and generally make money but still run the risk the pair completely blows out.

    BUT there is nothing such as "no risk" "almost no risk" , "strategy can't lose" such as what you claim.

    I think you should advertise your services in a slightly more prudent and professional way...to say the least...

     
    #19     Oct 4, 2009
  10. absolutely right. And no co-located solution will change that as long as you pay any kind of retail commission.

    I agree I find such comments by Cyborg pretty unethical and borderline to snake oil techniques.

     
    #20     Oct 4, 2009