Pair Trading Strategy Journal

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

  1. saico

    saico

    New trade for me. Actually I like those corr. snap backs.

    L: TOL 16.05
    S: MTH 10.84
     
    #661     Mar 10, 2009
  2. I don't trade pairs right now, but was thinking about looking into it in the future. I read through the thread, and one poster mentioned he had a 21 day stop loss. Although a very high win ratio, sometimes you will have a loss, and I want to determine what factors would lead to decide to take that loss since I don't wish to blow up my account. I did read once that one of the bright brothers went into one pair for over $ 1 million and held it for a very long time before it turned profitable including adding many layers, but I assume he had close to unlimited resources to do this.

     
    #662     Mar 10, 2009
  3. saico

    saico

    Unfortunately most prop firms don't let you trade odd lot orders. If anyone knows of a prop firm that allows odd lots please leave a note, or pm me.

    Thanks
    saico
     
    #663     Mar 10, 2009
  4. I got out just an hour after placing the trade at a 3% loss. I just realised that it was not a really good trade and I wasn't confident so I took a loss. I did it fast wit not enough preparation and analysis and reaped what I sow. Sold a breakout and bought a slowly falling stock. The ratio is also in an uptrend.
    I only use the distrance from mean in stdev. I will try to post my settings over the week end.
     
    #664     Mar 11, 2009
  5. saico

    saico

    New trade for me.

    L: ECA 38.13
    S: NFX 21.26
     
    #665     Mar 11, 2009
  6. Openned 2 new pairs before the close:

    Long ELD.TO 9.30 (.TO for Toronto)
    Short AU 31.90

    Long FNFG 10.03
    Short FMER 14.84
    A sector play on technicals.

    Passed EXC/XLU, did not like the risk/reward
     
    #666     Mar 11, 2009
  7. saico

    saico

    Hi total_keops,

    been curious and analyzed the pair with PTF. Got a signal as well. But do not trade financials these days. Nevertheless the trade looks good.

    saico
     
    #667     Mar 11, 2009
  8. nice trading guys, Im not finding that many good trade candidates at the moment, correlations seem to be breaking down across the board and it goes against my trading plan to take those signals.

    On another note I just discovered how to enter cross-boarder pairs into pairtrade finder, normally you can't enter 2 stocks from different exchanges because we have to select a single exchange for each stock group, however if you setup a stock group, select NYSE as the exchange, then you can use the yahoo extensions when entering stock codes, for example, RIMM & RIM.TO, for the stock Research in Motion on both the NYSE and TSE, allowing us to do same stock arbitrage. There's quite a few of these pairs. Not sure if I would pair trade these though, most likely would need to hedge currency risk out. Il stick to pair trading stocks.
     
    #668     Mar 12, 2009
  9. Exited two trades

    Sold BAS @ 6.53
    Covered HAL @ 16.26

    Sold WLL @ 23.93
    Covered PTEN @ 9.05

    New trade

    Long ETE @ 20.21
    Short MGG @ 18.57
     
    #669     Mar 12, 2009
  10. One new trade
    Short EWW 26.26
    Long EWG 14.18
     
    #670     Mar 13, 2009