Interested in spread/pair trading

Discussion in 'Trading Software' started by bad_dog, Mar 16, 2002.

  1. bad_dog


    I am looking into getting a realtime software package that will allow me to look at stock spreads/ a chart of SPY minus QQQ. I know Neovest's First Alert and Trade Station offer customizable spread charts, but I am wondering if there are other packages available (preferably at a lower price). Any help will be greatly appreciated.
  2. JayS


    Nextrend has a free delayed service (try this before you pay for anything), a $14.95 real-time, $49.95 real-time, $79.95 real-time.
    For real-time the $14.95 should work just fine. All the above services allow you to do spreads.

    Below (in the attached file) is a 5 minute line chart of the SPY/QQQ spread (to show you an example). You can go anywhere from 1 minute up to monthly bars.


    To chart a spread in Nextrend, create a formula and add the formula to the chart.

    How to create the spread formula:
    Select the "Formula" icon on the left
    Select "Add"
    Type in a Formula name example"Spread"
    We are going to create the formula so that you can use different symbols on
    the same formula or if you want type in the specific symbol
    This is the expression: ?1.LAST - ?2.LAST
    Select "Check" to make sure there are no type-o's
    Select "OK"
    Select "Close"

    Now add the Formula to a chart
    Right-click over the background of the chart
    Select "add elements"
    Select "Formula"
    Select the dropdown for Formula and select the spread formula
    Replace the ?1, ?2 with the desire symbols for the spread (SPY, QQQ)
    Select "Finish"

  3. Look into The catch is you have to predefine the spread before it starts to catch the ticks. Example: If you want to start looking at the PSFT / MSFT pair, you define a formula. At that point you will start collecting the ohlc of the pair and can't look back. Nice thing about it is that it catches the open hi low close. Not like other packages which just traces a line of the current difference.

    Also try and

    Hope this helps
  4. snorton


  5. bad_dog


    Thanks for all of the input folks. Seeing that I want to see OHLC bars of the pairs intraday, Linnsoft with data provided by will provide a reasonably cost effective solution.
  6. cashonly

    cashonly Bright Trading, LLC

    I've heard that AT Financial has good spreads ( If your broker uses RediPlus, they now have fixed their spread indicator (as of the 2/21/02 version) and it provides the spread on whatever timeframe you choose.
  7. vikana

    vikana Moderator

    metastock can also do this. Use the DataManager to define which pairs you're interested in. Alternatively, you can create indicators that reference your pair securities and look at them that way.