Pair Trading Strategy Journal

Discussion in 'Journals' started by jonnysharp, Aug 18, 2008.

  1. Dr Who

    Dr Who

    Hello. Just wanted to be the 1000th reply :)
     
    #1001     May 13, 2009
  2. Passed XLNX/NVDA.
    Went long into AGU/POT at 0.4372 even though it did not pop into my scanner (It should have).
     
    #1002     May 13, 2009
  3. Closed 2 trades for nice profits, portfolio at all time high.

    Sold JBHT @ 25.66
    Covered KNX @ 16.09

    Sold TNP @ 18.91
    Covered OSG @ 31.43

    New trade

    Long ZEUS @ 16.51
    Short SIM @ 5.64
     
    #1003     May 13, 2009
  4. Great job. i have you at over 150% IRR or something ridiculous like that.

    FYI I'm still running > 80% IRR but my selections don't seem to make as much money as yours per trade.

    But, here's something i just noticed today the last 17 trades I closed were all winners! Now I'll jinx myself.

    My oldest few open ones which are typically bigger losers arn't doing bad either. Maybe i'm learning!

    Mike
     
    #1004     May 13, 2009

  5. When did you enter the TNP/OSG trade? I see no signal on PTF for it in recent weeks.
     
    #1005     May 13, 2009
  6. You can use the search function(OSG,jonnsharpe)
    04-30-09 02:27 AM
     
    #1006     May 13, 2009
  7. saratur

    saratur

    Did anyone here backtested:
    a. Time stop (always exiting trades if they have not reached the mean after n days, e.g. n=6 or n=8) .
    b. Stoploss based on standard deviation, or percentage loss, or other criteria.

    In the past I have analyzed a number of past trades and seemed to me that an overall time stop (would have improved results, but I did not look at enough trades to be statistically significant, and I do not have the tools or ability to program a backtest.
     
    #1007     May 14, 2009
  8. Im actually in the process, brother.

    Im trialling a triple exit system.
    Im entering at 10% divergence.
    Adding to both positions at 15%.

    EXIT either at:
    1/ Reversion to the mean
    2/ Maximum stop loss at 20% (that should never or very rarely get hit - pretty much a disaster stop)
    3/ And time based exit after X number of days. I will have to optimise which X works best.

    (Whichever comes first)

    I will post the results here as they become available, hopefully in the next several weeks.

    Has anybody else trialled similar sorts of exits?
    Particularly time-based?
     
    #1008     May 14, 2009
  9. renton

    renton

    Just a question - is there any noticeable differences in terms of performance / risk in doing pair trading on a CFD account as compared to a spread betting account? Any thoughts at all?
     
    #1009     May 14, 2009

  10. I did not doubt your trade but there seems to a software problem with PTF.

    The PTF software has different numbers now than the screenshot that you submitted on 4/30. They are now showing no signal on that day. Have you ever noticed this before?
     
    #1010     May 14, 2009