Is anyone on this thread still successfully doing pair trading? If so, do you just trade it intraday and try to go home flat or do you still hold overnight? Also, what kind of stop loss do you apply in your pairs trading? Last several weeks have been tough for me (and other people in my office) and I was just wondering how others are doing. Thanks for any info.
I haven't pair traded yet this year...but the guys I know who are say it isn't working. Pairs are trending and generally acting out of character. I would suggest intraday scalping ...its best to be flat overnight these days.
Thanks trader42, but that thread was started Sept of last year and does not give any information about how this style of trading is working out for traders who are doing it now. NYSE Trader - thnks for the info. I also am beginning to think that scalping and going home flat is the way to go in this market with this style of trading.