Pair Trading Strategy Journal

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

  1. One new trade;

    Long ANV @ 3.77
    Short GRS @ 5.55
     
    #451     Jan 22, 2009
  2. waltbx

    waltbx

    I like that 2nd layer signal. Jonny, I wouldn't have any idea about how to set that w/o your instruction. Thanks. I've also set a layer 3 and 4 at 0.3 SD intervals. Don't know it that will ever trigger, but why not.

    wb
     
    #452     Jan 22, 2009
  3. waltbx

    waltbx

    I got a Layer 1 and 2 signal on TGP/TOO (Spread dropping) Good trade?

    Your trade today ANV/GRS the spread is increasing. How does that factor in? I would think an increasing spread is favorable.

    wb
     
    #453     Jan 22, 2009
  4. Jonny,

    Question for you. I have pair trader finder and V/MA came up as a trade, did you take this? If not, why not? I am just trying to pinpoint when I get in and when I dont.
     
    #454     Jan 22, 2009
  5. Yes I got in at a spread of $1.78, my trade in this same pair on the 9th was at a spread of $1.12, both times ive bet on the narrowing of this spread, yes the spread chart has ticked up but overall its in a downtrend, that is technically ANV is stronger than GRS.
     
    #455     Jan 22, 2009
  6. I didn't have this pair on my radar, ive added it now as its got good correlation at 96% plus they are 2 very similar business's which makes for a good pair. Yes I see the entry signal generated on Wednesday, yeah I would have taken a good look at that trade, going over the charts seems ok.
     
    #456     Jan 22, 2009
  7. slepore

    slepore

    So I guess no ones told you to get off your high horse?
     
    #457     Jan 23, 2009
  8. slepore

    slepore

    Has anyone on this thread done opening only strategies. If so, how would you compare that strategy to pairs trading as far as consistency, risk, difficulty, etc. Obviously to each his own but just curious for some input. Don Bright starts his student with Open Only orders but pairs trading appears lest risky to me?
     
    #458     Jan 23, 2009
  9. slepore

    slepore

    Jonnysharp,

    Thanks for staring this thread and posting your excel sheet of trades. Great to see you are improving so much. Have you increased your share size as you improve?
     
    #459     Jan 23, 2009
  10. Exited one trade for profits;

    Sold GFI @ 9.67
    Covered AU @ 27.69
     
    #460     Jan 23, 2009