Pair Trading Strategy Journal

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

  1. oby_2

    oby_2

    Dr Who....

    I've just loaded some LSE stocks into my PTF as LSE opens about the time I finish work. However, on my first triggers I noted the prices went from 400 quid to 4 quid in a day or 4 quid to 4p in a day or I was missing a week or more of data.

    Are you using Yahoo data for your analysis? If so have you experienced these problems?

    Thanks,
    oby
     
    #1301     Jul 2, 2009
  2. Dr Who

    Dr Who

    Yes, I use Yahoo and no, I havent seen these issues.
     
    #1302     Jul 3, 2009
  3. A few people here have mentioned running PTF on more than one PCs - e.g. one copy for pairs research/backtesting and the other for signals. Personally, I'd like to have a copy on my home PC running 24/7 and a copy on my notebook which I'm taking with me everywhere.

    Are you doing this with trial or paid copies? Is it allowed/tolerated by PTF?

    Many thanks for your input!
     
    #1303     Jul 3, 2009
  4. R1234

    R1234

    Interesting idea. But you've got a bond spread versus an FX pair - wouldn't transaction costs eat into any gains? How long would each of these positions last?
    What kind of Z-Score would you be looking at? 20 day? 200day?
     
    #1304     Jul 6, 2009
  5. PCanyon

    PCanyon

    Jonny--What happened with that OSIP/CELG trade from June 1? Did I miss that result?
     
    #1305     Jul 6, 2009
  6. Dr Who

    Dr Who

    Unless he got out, this is currently a huge loser.

    CELG Sell 42.60 (current 47.32)
    OSIP Buy 30.31 (current 27.71)

    Hopefully he managed to get out quickly, although it immediately went into negative territory after it was indicated as a trade.

    Shame that because this pair had a 100% record prior. Thankfully I didn't do it as I only do UK stocks and for some reason UK stocks don't seem to have the same volatility.
     
    #1306     Jul 7, 2009
  7. Biotech is a tough sector for pairs, too news driven. Pairs are better with business as usual type companies, the boring ones.
     
    #1307     Jul 7, 2009
  8. Yes I exited that pair at a loss, ive been light on trading lately, and have spent some time re-doing my radar, fresh backtests, removing old pairs and adding new ones

    Sold OSIP @ 27.71
    Covered CELG @ 47.32

    Sold SPG @ 50.05
    Covered TCO @ 25.24

    Sold AHL @ 23.41
    Covered MXGL @ 18.20
     
    #1308     Jul 7, 2009
  9. I haven't studied this pair extensively, more of a floating idea, yes there would be transactional costs, but I imagine the avg profit per trade would more than cover them.
     
    #1309     Jul 7, 2009
  10. Jonny,

    Have you exited them today?

    And while we're cleaning up the records...

    The above trade reported on March 5th is not mentioned in the pdf you posted later, neither there's any report on the exit.

    Many thanks! Look like you don't have any open pairs right now...
     
    #1310     Jul 7, 2009