Pair Trading Strategy Journal

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

  1. Ivan

    Ivan

    Hey Jonny,

    attached is the ASX list which was supplied by PT. See how you go, I'll be interested in your search


    regards
    Ivan
     
    #531     Feb 9, 2009
  2. Ivan there are plenty of good pairs, just look in the materials sector back test for example, attached is a screen shot of a small handful i got from a back test of ASX stocks.
     
    #532     Feb 9, 2009
  3. No not yet, Ive been very pleased with my results using just 1 layer, so for the moment im keeping it as is. I do like the idea of layering though, something il eventually incorprate into the trading plan.
     
    #533     Feb 9, 2009
  4. Ivan

    Ivan

    Hi Jonny,

    you're pretty quick with the cuttin and pasten ! Yes it looks like there are some pairs to be had. My PT database screwed up over the weekend, so I need to re-enter the stock groups again :mad:

    I will have another go and see if I get similar results to you. Thanks for your help

    regards
    Ivan
     
    #534     Feb 9, 2009
  5. one new trade;

    Long FMX @ 27.46
    Short ABV @ 44.64
     
    #535     Feb 9, 2009
  6. Exited one trade;

    Sold TMK @ 29.42
    Covered MET @ 27.53
     
    #536     Feb 10, 2009
  7. hey johnny,

    I'm a late arrival to this thread and was wondering if you could tell me what criteria you're using to come up with these pairs?

    I know you use the pairtrading finder, but i'm having some issues with my computer right now and can't download the free trailer and try it myself. So if it's not too much trouble, would you mind going over how you go about finding your pairs?

    there are obvious many methods at finding co-related pairs.. right? what are some methods you guys have heard of?


    ps. has anyone pair traded for a few years now ?
     
    #537     Feb 10, 2009
  8. Hi Chief,

    Not butting in but when you download the trial version I think they send you a spreadsheet with all the industry groups. Make pairs out of each of the industry groups. Johnny a while back listed exactly how he did it and seems like a good way.

    Are you having problems getting the supporting software to work? I had a heck of a time. Took me hours and had me chasing all over Microsoft user groups finding the answers. I don't even know what I did, I just kept working at it. I had .Net framework 2.0 installed and it was corrupted. I had to uninstall it, find a version I could install in an all in one file, and then add the 3.5 version. I think I also had troubles with the Server Express software too. the good thing was that by the time I had the software working it cleared up another problem I had with an I-book external drive and backup that wasn't working.
     
    #538     Feb 10, 2009
  9. well i couldn't download the software, because it requires you to download the windows installer as well, and i think windows installer will check if you have a legit copy of windows xp....


    =\
     
    #539     Feb 10, 2009
  10. tatankas

    tatankas

    Johny, what is the correlation lookback, shown on the attached screenshot?

    I am building my strategy, based on a number of filters, in order to have decent pairs to watch.
    A pair need to pass these filters, in order to be on watchlist:

    Filter1: Same industry/sub-sector
    Filter2: 70% correlation for last 365 days
    Filter3: 80% correlation for last 180 days and in a uptrend
    Filter4: Backtest profit for the last 365 above average


    This is just the beginning. Makes sense to you, or you are doing it on a different way?

    Best Regards!
     
    #540     Feb 11, 2009