Pairs Trading

Discussion in 'Trading' started by jcstylin, Apr 12, 2007.

  1. TraDaToR


    Why not? All good ideas. But if you have the software to test the model, that is the way to go. Otherwise, models are often beautiful and make sense, but they don't always correspond to reality.

    Yes, one of the problems that i've found recurrent in spreads is the difference of liquidity between the legs. Sometimes, I find good results based on close prices but it is only because one of the leg is more liquid and close price is more accurate.

    Otherwise, I find that hybrid systems are more unstable than the simple original method( mean reversion ). The more you create conditions, the worst it is. Testing volatility adjusted spread systems may imply more numerical variables and i don't like it at all.

    If i find something interesting, i DON'T post it:D ( just a joke... )
    #121     Apr 18, 2007
  2. Charly



    Your guess is wrong.

    It was just ONE silly comment.

    BTW my Enlishg is much worse than yours - guaranteed.
    #122     Apr 19, 2007
  3. I forgot its politically incorrect in 2007 to suggest anyone improve themselves in any way.

    So apparently, commenting on an easily corrected flaw in communication is like pointing at someones hunchback and laughing.

    Uh huh.
    #123     Apr 19, 2007
  4. If you want to correct grammer, teach punctuation, spelling or good writing skills, start a thread on the topic, and as long as we are on the subject of self improvement, may I suggest a course in staying on point and topic?

    Speaking of topics, this thread was suppose to be about pair trading, and I am fairly certain that improving ones communication skills won't make you money trading pairs, so let's get back on topic, and no more comments from the peanut gallery!:D
    #124     Apr 19, 2007
  5. You know what they say, if you want to catch fish, go where the fish are.

    I was going to post something cataclysmic for my 4000th , but somehow, this seems more appropriate.

    #125     Apr 19, 2007
  6. I'm sorry to everyone on all sides of whatever discussion we may be having, whether spelling, grammar, or even pairs...the Jimmy Carter peanut is really funny, LOL. (I guess it's a Jimmy Carter peanut, I may be wrong, it's really hard to know who's who on ET). :0

    Maybe not cataclysmic, but definitely funny.

    Don :D
    #126     Apr 19, 2007