When structuring a trade like this you want to be sure that you have two instruments that are at least semi-correlated. Too much correlation and you wont have any widening of the spread. I do something very similar to this but with ETF's that are semi-correlated. And always think about what will happen to the trade under different scenarios. The advantage of this type of trading is that it isn't a binary bet and there are multiple scenarios in which you can benefit. Of course there is also the chance that both instruments go against you...this means that this is a crappy trade
I do trade long short bas and QLD. You only need to buy one or the other to get the same exposure These pairs have nothing to do with relative value analysis. I trade pairs 2-4 times per month.
I have custom technical studies designed exclusively for spread trading, and those studies are loaded into common charting platforms provided they have certain study capabilities required. Many of my clients use eSignal, there are also Trade Station, CQG, and Bloomberg subscribers who use my studies on their platforms as well. Some clients have adapted my studies to the CTS execution platform charting package.
I need to go ask multicharts for AON conditions default to a regular setting for my batched order blocks where 20 people'd be doing 3-5 to 8 for 200.
You rang? LOL...thanks.... I think the DELL/AAPL pair might be a bit of a longshot. We do a lot of homework, or should I say PairCo does the heavy lifting and provides wonderful spreadsheets of analysis to help with our pairs. We are finding, once again, that tradeable pairs, with multiple entries and exits are paying off vs. simply holding for mean reversion. We like to expand with more pairs to reduce or overall market risk even further, using spreadsheets to alert us of entry and exit levels. We have a couple of automated spreadsheets as well. You may want to join us for our class, May 7-9 with all of us, including Rob Friesen, CEO of PairCo. Call 702.739.1393 to register. ET discount of $250 (only $750 one time, lifetime fee). If you're serious about trading, we can help. Call me. Don
The documentation shows the the default market order function in easylanguage (MC and TS) makes it so that all or none is the active fill price, and I just had to confirm that because I sort of wondered how we could just get 1 price on our fills, and it's AON default market order from sellshort/buy buytocover/sell day is an all or none order.