So your targets are based on your goals (a randomly chosen number / percentage / ...) instead of driven by expectations derived from volatility / MAE, MFE / ... Just trying to understand your answer...
You mentioned before that you are just looking at co-integration. Many of these stocks are not in the same sector, so this is truly an exercise in data mining. That being said, bottom line is making money, no reason for 2 companies in the same industry to stay in-line either. I'm just curious if you look at back-test history of the pair, if so how far back, what your 'philosophy' is on this issue? Thanks!
If you wanna go Canadian, here is one tip. Sell ACO/X.TO Buy CU.TO Strong and stable holding-operating company relationship. Made money on this couple of times before.
Hi guys... I've been using the old settings on ptf software but have been curious if any users are using the new default settings and if so what their experience has been when compared to the old settings... Thanks... Nick
Dukatu1 are you using Pair Trade Finder to select your trades. GE/TXT has got good backtested results.
Which broker do you Pair Traders use? Just today Scottrade (my long term account) bought in the short side of a pair trade that I'd only opened a few days ago. Often they don't even have shares to short so I've decided that Scottrade are losing my business. I don't want to move to IB (too many eggs in one basket) and I've heard mixed reports about TOS. Any recommendations please. TIA
is anyone trading the SPG/VNO pair? this is the first pair that i've had go this offside as a new pairs trader, would be interesting to hear the views of others on this one.