Pair Trading Strategy Journal

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

  1. Magnas

    Magnas

    I have closed pair BCR-BDX for loss 0.78% yesterday.
    M.
     
    #2111     May 11, 2010
  2. Darshan

    Darshan

    How is everyboday doint during earnings season? I found the last couple of months have been pretty rough.

    I'm not taking most signals because they are all moving on earnings.
     
    #2112     May 11, 2010
  3. Darshan

    Darshan

    Max days in trade I have 15...FYI
     
    #2113     May 11, 2010
  4. mike4628

    mike4628

    Hi

    Yes Darshan ... The earning seasons is the worst period to pairs trade , it's hard to find good pairs without earning annoncement coming .

    Opened monday afternoon

    Long POR
    Short FPL



    Today

    Opened
    Long OGE
    Short DTE

    Closed ( Cleaning old positions )

    CLX-CHD 0.003 % Gain
    AVB-BRE 0.005 % gain
    JCI-ALV 1% gain
     
    #2114     May 11, 2010
  5. Darshan

    Darshan

    Do you use pair trade finder?

    I've been dabbling a bit with the seetings... this is what I came up with.

    Under Chart options.... Correlation lookback 100
    RSI lookback 14
    Volitility STD lookback 14
    Volatility Average lookback 100

    Signal Settings
    STD lookback 20
    Ration Lookback 14
    Stretch lookback 14
    Exit 00
    maximum day 15

    Wondering what variable the rest of you have on there... I'm pretty sure this is what johnny sharp was using, although I'm not sure about the STD.

    what do you guys have? Just curious?
     
    #2115     May 12, 2010
  6. mike4628

    mike4628

    Closed

    KRC-BXP 2.5 % profit
    O-FRT 3.1 % profit
    WL-BBT 2.9 % profit


    Opened

    Long CFX
    Short TNC


    Long GTY
    Short NNN

    Mike.
     
    #2116     May 13, 2010
  7. Magnas

    Magnas

    Hello,

    I have closed RNR-WRB pair for small loss of 0,37% today.

    I have also opened few new pairs few minutes ago:

    Sold ACE @ 53.77
    Bought CB @ 52.21

    Sold CI @ 34.42
    Bought CVH @ 22.00

    Sold BVN @ 37.02
    Bought GG @ 45.76

    Included is my overall stats. I am +6,5% (since beginning of march) on my account (without commissions), but right now have few pairs opened with open loss, so it will be interesting to watch how this unfolds.

    M.
     
    #2117     May 13, 2010
  8. Dr Who

    Dr Who

    I haven't posted on the forum for a while but those with a memory may be able to remember that I'm based in the UK and trade pairs via my spread betting account. I tried CFD's for a while but the expenses were too high.

    Now that I've been doing it for a year or so, I'm looking at the consequences of spread betting rather than buying shares using a broker. No one likes to say they 'spread bet' as it just doesn't sound the same as 'investing' or 'share dealing' etc. There's something a little unsavoury about the term.

    My initial reservations about spread betting was that I assumed I was going to get the worst of it by a wide margin but in reality its quite the reverse.

    The world of spread betting has changed quite considerably over the past few years and as more players have come forward, the spreads have become tighter and tighter. I'm generally not much worse off than 1.5p at each end of the deal, so my average Buy share price might be 501.5p compared to 500p. But I would have broker costs of around £18 to factor in too (2 x £9 for the pair).

    However, there's no doubt that overall I would be slightly better off when it comes to my gross profit if I'd dealt directly in shares rather than using a spread betting account and I've calculated that my approx £35,000 profit would have been around £37,000.

    So, there ya go, dealing in shares IS better than spread betting. But hang on a minute, I've forgotten capital gains tax which, in this case would be around £4860 making my nett profit, if I'd dealt in shares, as only £32,140.

    So by spread betting I end up better off by around 8% because its tax free in the UK. And on top of that I haven't needed to tie up £35,000 in capital for each deal. As I generally have around 8 pairs open at any stage, this would mean tieing up around quarter of a million pounds at any one time rather than about £25,000 with a spread betting account.

    So, depending on your local tax laws, I'd advise anyone thinking of pairs trading to look a little more closely at what spread betting can offer. Spreads are tighter than you probably imagine and if you can get over the hurdle of saying the words 'spread betting' you may find it a viable alternative.
     
    #2118     May 15, 2010
  9. pogo7646

    pogo7646

    Dr Who:

    I recall your earlier posts which were quite interesting, if a bit hard to fully follow since we do not have spread betting in the U.S.

    Anyway, well done, your returns seem pretty amazing.
     
    #2119     May 17, 2010
  10. mike4628

    mike4628

    Today

    Closed
    HCN-LTC 0.01 Profit

    Opened

    Long DDR 11.83
    SHORT CBL 15.23

    Mike
     
    #2120     May 17, 2010