Pair Trading Strategy Journal

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

  1. neospecialist, I didn't wait any longer after the signal was given, I had it triggered on the day I placed the trade, Im using default settings in pt finder, not sure why you got it earlier.

    also with the question about being beta neutral, I only trade dollar neutral, its simple plus it works fine, if one stock has a significantly different beta than the other stock in the pair then that wouldn't be a good pair to trade as they aren't 2 similar stocks.
     
    #951     May 7, 2009
  2. Closed 2 pair trades for tidy profits

    Sold CNMD @ 13.47
    Covered SMTS @ 15.17

    Sold MA @ 184.99
    Covered V @ 66.63
     
    #952     May 7, 2009
  3. Mikee

    Mikee

    Johnny are you not suffering some noticeable drawdown after placing the MET/PRU trade (as you put trade on before PRU announced earnings).

    Or do you intend to add another layer soon?
     
    #953     May 8, 2009
  4. See attached. The signal in the software was given on the close of 5/1. Your entry prices were the close of 5/5.
     
    #954     May 8, 2009
  5. Took ealy profits
    Sold MFC @ 19.79
    Covered PRU @ 42.83
    +3.92% after fees overnight
    Expected a bigger move on the downside for PRU after the Stress Test and I am not willing to carry that trade any longer.
    Time will tell.
     
    #955     May 8, 2009
  6. The pair is only down the amount to expect as a profit target. If one has a big drawdown on such a move he is taking too big positions IMO.
     
    #956     May 8, 2009
  7. Jonny

    I took a look at the Pairtrade Finder snapshot provided by neospecialist.

    I have a question that is different from his, however.


    Right now, the LNN px. is about 1.5 times the BUCY price.

    If I wanted to overweight the BUCY price by 1.5 times or by 2.0 times - for whatever reason - would the Pairtrade Finder program be able to analyze the pair with the ratio I dictate?

    Or are you only allowed to run it with whatever the prices are for the stocks at the time?
     
    #957     May 8, 2009
  8. New trade in my scan that looks for overbought/sold patterns, sector play.
    Not a correl play.
    Playing the 5 minutes chart.
    Short FITB @ 8.40
    Long FNF @ 15.20
    Very risky and will cut it fast if needed.
     
    #958     May 8, 2009
  9. Dr Who

    Dr Who

    Closed another trade this morning. So that's 14 trades and 10 winners for a profit of £361. 3 open trades showing a total profit of about £15. All at £1/pt spreadbetting during my 30-day trial.
     
    #959     May 11, 2009
  10. Mikee, yes that trade is looking a little silly now, could of easily gone the other way, its not having a huge impact on my a/c, win some - lose some, live to fight another day.

    Neospecialist, yes thats funny, because Im showing the original signal on the same date as you when I look in the analysis window, I must of entered into the trade, I don't usually do that.

    Charlie, Im pretty sure you can't do that in pt finder, most of us trade dollar neutral because of its simplicity and it works fine, interesting concept though.
     
    #960     May 11, 2009