Pair Trading Strategy Journal

I waited a day for an indication of reversion

Bot KO 56.2 Jan 6
Sold PEP 61.99. Jan 6

WB

 

Here's another one I'm watching and may enter as soon as a reversion is indicated -- tomorrow? Friday?

Long BPZ
Short NBR

RSI 33 for the pair and dropping. I'm wanting it to drop to maybe 25 - 30 and then increase.
Ratio has gapped big below mean. Trend ok. No news. No earnings reports for a month or more.
Correlation 77% and increasing.

Walt B

 

at 8:23pm EST...my indicators are showing a sell ES vs YM buy SPREAD trade now...entered it now via demo...2 contracts each...will update tomorrow...IMO

 

you forgot to mention...you can also trade options in pair trading rather than just the Stocks...note this...

 

why take on vega risk and theta decay when it's not necessary?

 

not enough cash to trade outright stocks

 

You guys trading the pairs are totally spot-on and please keep up the good work.

I like your style.

 

short CAD vs long AUD spread trading...now

 

Interesting approach. Thanks Walt!

 

What is the criteria PairTradeFinder uses to filter stocks?