Hey retard, most pairs' traders don't carry 30 times their account in overnight. I'll scale into 20-40 (on busy days) times intraday and carry around 5-6 times in total overnight. Very seldom do i carry a position longer than a few days.
So you do quite a bit of intraday pairs trading? I am just learning about pairs and have read that it is alot harder intra day so just asking
GS charges fed funds + 1.25% for debit interest? does this assume that one must have a hedged position long/short? what do you/they charge for 100% long overnight?
Ummm i don't know if harder is the appropriate word to use...perhaps specialized? I started trading from a longer-term perspective in pairs and completely changed my methodology to what i'm doing now - It's very quantitative, that's all i'm gonna say.
This is the program I use: www.daytradepairs.com Its a plug-in for Tradestation. I have been using it for 2 months and have made very good money using it. Sandy
By spreading out the overall risk by adding more pairs to the mix, we have the opportunity to snag quite a bit of intraday "noise" and will likely have several "day trades" each day in, at least, a few of our pairs. By having pre-determined entry/exit levels this activity can be triggered easily with our spread sheets. This additional activity has added greatly to the bottom line of our pairs traders. In addition, we tend to leave one "layer" on all the time so we can take advantage of longer term trending of each pair that is going in the correct direction. Because of the profits that can be made by pairs trading, we have been including pairs trading in our 3 day class here in Vegas. By having access to the database provided by Bright/PairCo, a lot of the grunt work has been eliminated for the traders. Don