Opened new trades today: Sold AFG @ 28.19 Bought ALL @ 31.18 Sold BMY @ 26 Bought WX @ 14.24 Sold CS @ 51.36 Bought NBG @ 4.05 Sold GFI @ 12.30 Bought GG @ 33.85 M.
NBG has shown up in a number of signals lately. Unfortunately, I cannot short them, (or just about any other financial ADR) through my CFD provider. These are all available for shorting through IB, where I am in the process of setting up a small acct.
For what it's worth: PTF signalled an exit on the 18th for this trade. As I was not in it did not monitor so closely: Sell OXY @ 82.34 (.93%) Cover CEO 163.8 (1.42%)
Does anyone trade oild/gold/REIT pairs? Just curious... I've been doing it for some time and the last couple of months have been a bit rough. A few stocks deviating like crazy and not regressing to a mean for weeks. I've found myself holding the bag and averaging into it. Wondering if anyone out there would like to communicate in regards to what they are looking at in these particular secotrs and so forth. After leaving my trading firm, I've been trading as a lone wolf an dI find that it has it's disadvantages. I've adapted my current model and it has worked very well for me. However I never really have a stop out point. I tend to keep averaging in. This has worked for me, however one out of ten trades really puts a dent in my account when it does run. Do you pairs traders have any critera on when to close out a spread if it keeps moving away from you?
I trade these sectors. As I am doing stat arb, look for the same thing as I do in all pairs i.e. High corr, nx Profit/Trade, % Winning trades etc. As far as cut off for losses I close out the position when one side of pair => -8.5%, unless other side =>+8.5%. B.tested this rule. Keeps you out of the big losers for small opportunity cost.
Thanks coreed for the reply! I assume that you are daytrading these pairs? What is your entry? -8.5 you mean the net between the two stocks, right. I'm actually revising my strategy that I won't enter a stock unit the net looking at a 10MA is greater than 10% What's your entry point? PM if you'd like, maybe we could chat more.
New Trade: NYSE Banks Sold BAC @ 17.47 Bought IBN @ 40.35 What I like about trade: Layer 2(2.5 SDs) Great 'Heartbeat' ratio chart Corr value high - Trend flat/up % -> Mean at high end of near term range What I don't: Spread chart is opposite of where I wld like it to be Financial stock - Still some residual risk with these.