Pair Trading Strategy Journal

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

  1. riviera

    riviera

    Thanks for you interest H2O,

    of course, low profit expected = short term holding (2 days on average).

    Targets above-mentioned are calculated for the safest and conservative way to achieve my goal, but sometimes , even target hit, i accumulate positions.

    Consider each pair trade independently.



    Goal achieved

    Goal achieved


    [​IMG]


    Goal achieved


    Goal achieved


    [​IMG]


    right ? :p
     
    #2311     Nov 4, 2010
  2. on 03/11 the

    B FCX
    S PM

    trade - it looks that it don't work in your direction

    FCX traded up at open and turned lower during the trading day, or?

    so it looks that the goal was not reached for the day
     
    #2312     Nov 4, 2010
  3. riviera

    riviera

    right ! but as i wrote above (answering H2O) : "short term holding , 2 days on average".
    Now look at the opening today, right ?
     
    #2313     Nov 4, 2010
  4. i see; it works well with the opening-gap. good trade :)
     
    #2314     Nov 4, 2010
  5. riviera

    riviera

    #2315     Nov 5, 2010
  6. riviera

    riviera

    Market opening :11/ 5 / 2010


    This signal still available :


    buy POM
    sell PM
    target : +0.69%


    new signal :

    buy TLAB
    sell PXD
    target : +1.31%
     
    #2316     Nov 5, 2010
  7. mpat89

    mpat89

    Hi people,
    Just an update on my progress so far. I started off using CMC Markets for CFD's, this has been fine but unfortunately most of the US equities I want to trade are unavailable. I was using CMC because there was no minimum commission and I was paying 2c per side. Unfortunately due to the lack of available markets I am now considering using IG Markets (spread betting). I was just wondering if anyone has used spread betting with this strategy, more specifically IG. Whether I like it or not it seems as though I'm going to have to try it out this way. Input would be much appreciated. One advantage of note would be that gains are tax free(!)
     
    #2317     Nov 7, 2010
  8. robbo

    robbo

    Why dont you open a direct access Trading Account. I know everyone says spreadbetting is tax free but you need to make a profit before you pay tax.
     
    #2318     Nov 8, 2010
  9. irucken

    irucken

    Riviera / Mpat,

    You both have posted that you use cointegration in your pairs selection.
    It is something that I would like to automate into my screening process as well.
    I've done a bit of research into ADF & linear regression methods, both a bit complicated for my current level of math & programming ability.
    Would either of you be willing to provide some guidance?

    many thanks
     
    #2319     Nov 8, 2010
  10. what do you think :

    Long XLV
    Short XLE

    or

    Long RY
    Short TROW

    ?
     
    #2320     Nov 9, 2010