Good to hear saico... its really all about being selective and entering extremes. I've really learned to pay attention to the % from mean. Too early to tell as I just started myself but so far so good...
Totally agree NKNY! Since I started I made some more changes that worked out nicely. One thing is to be very selectÃve already when it comes to choose the right pairs and then again to choose the right trades. One of the most important things are the extremes like you mentioned. I have a great month so far with 7 closed trades. All profitabel. And the ones that are still open show a tiny red, or already a nice green. Thanks to Jared for a great software. saico
Jonny, the reason I'm asking is because I was wondering if you do odd lots in order to balance each side. I use IB and I know they have Combo Trader that can handle spreads. Does anyone know if it can handle odd lots. If not, if anyone is using IB for pairs I'd appreciate how you're executing your positions. Thank you.
No, assuming you mean the difference between the two stock prices (I don't use Pairtrade software). Actually the combo price can be confusing especially if you ratio your quantities which I think is typical. Play with the combo order and you should be able to get the hang of it. It can be confusing and be especially careful that you pick the right kind of transaction (buy or sell). I have made that mistake more than once. Don
Not quite a pair trade but close.....have you ever tried index replication by baskets? Its very similar to what you are doing.