Pair Trading Strategy Journal

No, you will have to manually sort them in Excel b4 loading into 'Add Stock' window

 

The ratio chart is picture perfect. Corr >90%
B.tested in PTF the pair has 90% winning trades
But...profit/trade is only 29.45 with 10k/10k
How do you make any money with a pair like that?

 

I had the same thought. Very little profit potential in the reversion. Also thought is that these both distribute dividends each month so Look out for ex dividend.
thought

 

yobo, you're trading a pair of one sector or a pair of different sectors? example: gold/gold or gold/silver too?

 

I would trade two gold companies or gold against silver. But I'm not currently. The only pairs I trade now are negatively correlated pairs and going with trend. Trading spreads requires to many trades to make little profits. Favorite pair is spy and tlt.

 

Sold FMBI @ 13.62 (5.66%)
Covered MTB @ 79.55 (-2.41%)

12 Trades posted to forum

9 wins
3 losses

 

New Trade: NYSE Healthcare Providers

Sold BKD @ 19.29
Bought HMA @ 7.45

Reaching Layer 2 convinced me to put on trade



Meets all the criteria for all my trades posted here.
Only neg. is spread is in middle of 50d range.

 

Trades today:

Covered for profit:

AB - OZM pair, gain 930 USD (with 10 000 allocation per trade)

Opened new trade:

sold AMR @ 10.16
bought DAL @ 13.28

M.

 

Sold POM @ 16.93 (.83%)
Covered PNW @ 37.35 (1.53%)

13 Trades posted to forum:

10 wins
3 losses

 

jonnysharp, and you're trading a pair of one sector or a pair of different sectors? example: gold/gold or gold/silver too?