As Mav said there really is no "better" - there is only profitable and not profitable, and that always changes. The true edge changes, not only in instruments, but in the way you approach those instruments. I am saying that of our traders, the pairs guys are doing better than the "lone wolf" scalpers/momentum/RS/and, yes, the "directional" guys. The "contractual pairs" are literally a "lock" of profits. But, again, things change. There are many edges, as I said. If you have an interest, you may like to read this from a few years ago...it represents some of these changes over the years. www.stocktrading.com/adaptingnew.html And, realize that some people do well with change and some don't, it doesn't make one better or worse than the other. Some of my "older" guys will never trader pairs or use our automated programs, but will likely make money for the rest of their lives. All the best, Don
Hi Don, I read that article some time ago- it is interesting. What I dont undestand about pairs is which one to trade and what direction- how does a pair trade differ in risk than any other- I understand one leg is short and other long- and maybe even ratio 60/40- where does speculation begin and end and where do I fing a good pair trade- never mind manage the risk- who finds the "trade" for your guys ?
Oh no, now you've done it. You've opened up the black hole of pair trading. :eek: :eek: :eek: Lock the doors, close the windows, hide the children! Just kidding Don, The floor is yours.
You'll get a good insight from the "master" on Wednesday. Master is Rob Friesen, not me. There are literally a couple dozens sets of criteria for all that. Don
Serious question Mav...do you think there is enough interest to do this on Wed, or should be wait a week...I'm good either way. (and others out there). Don
Because I want traders to learn my system with as little leverage as possible. The ETF's are so small that you can trade without worrying about money. It's simply about execution. Once you are consistent with the ETF's, you can leverage up the size with the futures. And so far it's working!!!!!