Yes close. Say I want to purchase $10,000 of each stock I divide 10,000 / share price = shares long/short.
thanks everyone who has contributed to this thread. i'd had no idea how to trade pairs in stocks before coming by this thread. jonny, on 9oct you said you were down 2.9% of your acct, but after a few trading days you were back up to 21% does this mean the pnl varies a lot?
Yes my account doesn't usually see 20% swings in several days, but as I and others predicted when the turmoil subsided many of my pairs returned to their norm very quickly, I don't think thats a normal event only because of the craziness of the last several weeks. my profit has been growing steadily since then.
congrats! this really inspires me..i always like pair trading i just installed the software u'r using..have some questions: how do u add a list of stocks? i have to click and search for every single one.. have u tried other exchanges? i tried adding singopre stock exchange but couldn't find any stock.. again thanks for ur help
Yes you have to add them one by one which is a bit time consuming, i think of it as a labour of love however I think they said on their forum they are updating the program to import stock lists at once, looking forward to that. Im only trading US stocks atm, was looking to get into LSE stocks in the nearby future but finding plenty of opportunities on the NYSE & NASDAQ.
How long do you hold your positions on average? Do you use any recommendations from pairtrade finder?
I think my average trade lasts about 7-10 days and yes I take all my signals from pairtrade finder. Closed one trade today for good profits; Sold TV @ 16.45 Covered OMC @ 27.93 Opened 2 new trades; Long GRS @ 3.12 Short EGO @ 3.38 Long BAX @ 59.08 Short GENZ @ 73.57
Do you use a broker who pays you interest on the short side ( or at least does not charge you interest) as yobo suggested at the beginning of the thread?