Pairs Trading or Arbitrage

Discussion in 'Prop Firms' started by bsesen12, Jun 17, 2009.

  1. bsesen12


    It is more fun market-neutral less Risky and Depthless lucrative opportunities in Arbitrage
  2. riskless in arbitrage although depthless is maybe fun for lucrative, but not so avail in all the levels of your prop may seek.
  3. Stosh


    An example of how educational ET can be.
  4. so far this thread is a WTF moment
  5. come lick my pencil
  6. Best in awhile on ET this thread is.
  7. Anytime I see Pair Trading I always wonder what their first step is. The first step is finding the pair, the next step is determining the corrleation.

    What most people do not know is that pairs trading is only possible with nearly perfectly negatively correlated pairs. Positively correlated pairs still have upward drift, and every commentator I've ever seen on the subject including one this week on fast money did not accurately describe a pairs trade correctly.
  8. We did a Pairs Trading basic presentation for ET'ers a while back. Here is the Powerpoint if you care to see some of what we do.

    I worked with Darren Clifford on this little presentation.


    Darren's group has proven to be our single most successful group in 2008, with a couple of dozen members all making 6 figures. I'm very proud of this fine young man. He has traveled the globe, often with his family and friends, traded from a dozens of countries, climbed Mt. Kilimanjaro, along with many other feats.

    I hope this link works for slides.

    Anyway, we may do another presentation for ET at some point.

    All the best,