who does allow long term Pairs trading

Discussion in 'Prop Firms' started by IVtrader, Apr 12, 2013.

  1. IVtrader

    IVtrader

    I've been reading the postings about the various prop firms and talked with 3 prop firms so far on the phone. what I understand is that few firms(with Bright trading being exception)don't want to hold overnight. yet if one trades Pairs Long term, you have to hold overnight. out of the other 2, one won't and the 3rd "says they will"

    is Bright the "only" firm that allows this or are there others? who allows longer term pairs trading?

    J
     
  2. Pairs are different, you are reducing risk dramatically. Holding directional overnights is super risky and at 20-1 leverage, you can probably take out the whole firm if you want it. It's a 5% margin.
     
  3. IVtrader

    IVtrader

    thanks for responding Evo

    I'm trading highly correlated pairs. since you've been in the industry a long time, might you know which prop firms(beside Bright and allegedly WTS PTS)that would welcome pairs traders?

    Jim.
     
  4. Echo trade also allows long term pair trading.
     
  5. I only know of Bright that can handle pairs but Bright is a very reputable firm that has been around for a long time
     
  6. We have found that by holding pairs for days or weeks, and having multiple correlated pairs, that the risk is pretty low. Of course don't keep all your $$ in one or two pairs, but perhaps 10 or 20.... that tends to flatten the risk curve considerably.

    Anyway, you know how to find us, send me an email or call.

    Don