here's a few good threads on pairs.. http://www.elitetrader.com/vb/showthread.php?s=&threadid=43073 http://www.elitetrader.com/vb/showthread.php?s=&threadid=45130 http://www.elitetrader.com/vb/showthread.php?s=&threadid=8533
And what a dream come true for the prop/chop shops! Now they can double their commissions or more (the more pairs, the better boys!)...and gotta trade that size to make it worth while! And the best thing about trading pairs? It helps keep the newbies around even longer, because they're more market neutral and won't lose their ass for a whole 'nother two weeks. Load 'em up, boys, we're tradin' pairs! Yeee ha! Those prop owners are laughing all the way to the bank. (Loved the interview on that last link. This guys been trading all of 2.5 years, admittedly blew through his capital a couple times...and he's the "expert trader" from Bright?)
C'mon guys ease up a bit. At least this strategy keeps you in the game longer while you learn the intricacies..
Truth teller...with all due respect...you don't know what you're talking about. There are many ways to skin a cat...and many ways to make money pairtrading. I make a great living pair trading, and have been for the past four years. You see....within the context of pair trading...you have a great degree of flexibility....this allows you to really knock out steady, consistent profits. As for Darren, yes, he had a few set backs early in his career, to me that is not a negative...in fact it is a testament to who he is as a person. The fact is, he is a good guy who has worked hard and persevered and has achieved a good degree of success. Personally I am honored to know him and call him my friend. Good trading to all! Mike
you name it....and I probably trade it. Retail, financials, oils, gold, drugs, conglomerates, homebuilders, healthcare, etc.
we had an automated strategy running on sp500 pairs. daily data. not profitable anymore. we think due to littel dispersion and volatiliy.