Ok let's get back to business. Here's a thought about correlation. Would like to hear others that have a statistical background. By...
Can we please give this thread a rest with the finger pointing etc. Obviously, no one likes to hear about a trader at a firm take a big loss...
Nice work GGSAE, You and I trade a lot alike. Nice thing about pairs is that you can trade around them like you did with CF. No set rules,...
pair trading is probably the safest method to protect against a black swan event. Remember both stocks may go down, but the weaker stock should...
I thought you probably were. Interesting tactic. Never thought of using MOC's that way. I like the idea.
Nice work Johnny. Is it just coincidental that your trades happen to be the exact closing price of each day you sell and enter a trade?
Today is a perfect example why you want to trade pairs. Good luck to everyone! Its bloody in the streets.
In the example I gave with the SPY and the SDs you go long the SDS only because it is twice the inverse. With stocks you would stil short one...
Not sure I follow you but negatively correlated assets/stocks move in opposite directions versus moving together. So for example The SPY is 98%...
I took a look at the the BA lmt pair and in my short term time frames of evaluating pairs I see that it has a negative correlation which brings up...
Nice work so far Johnny on taking profits again. Any observations about the pairs you are still holding? Overall have you made money or are...
Hey Joab, I agree in buying strength and selling weakness. My point was geared to when you open the trade at the end of the day. Short the...
Here's another example. Long MOS short MON. MOS is taking it on the chin today compared to MON. MOS is down 8% versus MON down 4.48%....
My database identidies pairs when the ratio is out of whack...beyond two std. dev's. Plus I track RSI and a few other conditions. Typically,...
I use statistical correlation based on closing prices of the two stocks in the pair. Interesting enough, the cf/pot pair is now profitable and...
"yobo ive done some simple testing on the forecast function and I didn't find anything of predicitive value, however as GGSAE suggests a...
Just a follow up to my previous post. Current pair ratio of cf/pot is .877, the mean is .74. and two standard deviations away from the mean is...
Interesting post about the correlation trend. And to further the discussion.... Quick question for anyone in the know... Excel has a...
No doubt fundamentals are important. In pair trading their is no easy hard fast rules. The key to success with pairs is the same with any trade....
Not sure I understand your question but with all pairs I always capital balance. Equal amounts of dollars on both sides. For me today,...
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