hey guys i know it's frustrating but Don explained in the first post that he could not go into detail regarding the strategies he mentions and that if anyone feels that this thread is an ad he would gladly remove it. i don't think he could have been anymore up front. Don, i don't think you should remove the thread although maybe a change in the title would eliminate any confusion. thanks!
Hi Bryan, I understand that, and a simple, "I'm sorry, but the daytrading of pairs is a tightly held secret in the Bright community and I'm not at liberty to share it" would have sufficed. Like I said, I can understand that. But I don't think my post was even read, because the reply was completely unrelated. But thanks anyway, Kirk
How can you start a thread to trade ideas? And then say you can't trade ideas just because it wouldn't be fair to your traders. What do you suppose the title of the thread be changed to? "Join Bright and exchange Trading Strategies"
It seems that we can't please everyone. I am happy to discuss overall strategies....but I am not comfortable with details for a couple of reasons. I mentioned above about my concern for our traders who need to feel totally comfortable with sharing their more advanced strategies with the management of our firm (how would any of you feel if you developed a highly profitable methodology, shared it with your firm's management, and they posted the details on a message board?). Our firm has always been "education" oriented, and we have monthly "advanced training sessions" for our traders where they not only learn, but share...and it obviously works well. And I can't apologize for that. Let's get past the "sour grapes" and "sabre rattling" and go forward. Keep Smiling!
Don, I am happy to discuss overall strategies....but I am not comfortable with details It's just a little strange to most that you started a thread called Some "Bright" strategies and now bristle at the idea of discussing any details?! Like someone previously said, what value would it be for me to tell you that I want to discuss my strategy of "buying breakouts from consolidation" yet, if you asked me any questions about it I told you, "Sorry, can't discuss any of the details..." Obviously, Don, it would be of no value to you whatsoever. In fact, you might rightly be feeling a touch of "sour grapes". Anyway, as always, "Keep Smiling!"
Again, I am at a loss as to the tone of a message like the one above. I would welcome a personal phone call from you to discuss anything that I have posted, and would hope that you would express any concerns you have. My number is 800.249.7488.
Pairs trading takes several forms. You first start off by finding 2 stocks (generally in the same sector) that have "tracked" one another and (this is the more difficult part) have actually "crossed" each other in weighted pricing. Then you track the pricing differences (we use the "price difference" tab on the RediPlus charting package) to show this. We then enter a trade based on momentum (either long or short), and see if we can close that trade at a profit or, if not, hit the bid, or pay the offer on the other stock. This establishes an opening "price differential" - we then post that to our spread sheets and set alerts for activation of additional trades, or to close the position and start over. We try to pull out a pre-determined amount of profit, or else add to the position incrementally. This is the basic method, and after traders feel comfortable with doing this then we go into longer term (and a little more complicated) strategies.