BarTune1
441 posts
msg #104672
- Ignore BarTune1 |
1/27/2012 8:39:59 PM
I got out of my GG:ABX trade with a 5.3% overalll gain, turns out the KGC:GLD trade was much better.
symlist(KGC:GLD)
offset 01/19/12
If you want to pairtrade, you might want to consider specialized software like Pairtrader. Kevin put me on it last May and I have done very well using it. Its paid for itself many times over.
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Kevin_in_GA
4,599 posts
msg #104674
- Ignore Kevin_in_GA |
1/27/2012 9:07:31 PM
PairTradeFinder (www.pairtradefinder.com). That's the one to which Bartune is referring. If you want to do pairtrading, this is a great piece of software to have.
Kevin
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jsheetz
23 posts
msg #104678
- Ignore jsheetz |
1/27/2012 11:41:34 PM
Awesome guys, thanks, I will look into the software. Right now I am trying to see if these can be executed with options as well to gain some leverage. It seems like it will be a bit tricky though to make sure to pick the correct options to buy. Right now I am toying with different vertical spreads on both sides to hedge the effects from time and volatility. Have either of you had any experience trading options in pair trades?
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BarTune1
441 posts
msg #104682
- Ignore BarTune1 |
1/28/2012 10:48:42 AM
I would not use options to pairtrade .... you are really trying to squeeze out only a small percentage from a typical pair trade .... like 3-5% on average. The bid/ask spreads, commissions and time decay associated with options will eat up that margin in no time.
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Billirider321
62 posts
msg #107283
- Ignore Billirider321 |
7/27/2012 10:11:43 PM
I will like to see if you guys are still using this strategy ..how are the results.
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Billirider321
62 posts
msg #107823
- Ignore Billirider321 |
8/27/2012 8:08:02 PM
Any body want to update on this . Is this strategy worth looking into.iam planning to subscribe to pairtrade
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BarTune1
441 posts
msg #107825
- Ignore BarTune1 |
8/27/2012 10:41:03 PM
About 70% of my trades are pair trades (the rest directional reversion to the mean) and this has been one of my better years ... Pairtradefinder is the main software I use ... actually entered AU:NEM today ... I find that you tend to grind along without the portfolio moving much and then it pops every now and again ... I find that I can sleep easy also knowing that if I am $150K long - that I'm $150K short across a number of positions so that it doesn't really matter what the market does ....
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Billirider321
62 posts
msg #107827
- Ignore Billirider321 |
8/27/2012 11:50:22 PM
Thanks for a quick update. I have seen some good stats by trading the odds(Frank). He stopped blogging. He was trading SPY and RTH pair trading.
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wkloss
231 posts
msg #107835
- Ignore wkloss |
8/28/2012 12:54:55 PM
BarTune1 & Kevin,
Both of you have mentioned the pair trading concept from time to time and I wondered if you would post more information about it, perhaps a basic overview. I understand the concept of trading a highly correlated pair of stocks that have temporarily strayed from their high correlation. Would you address what it is like to do pair trading....slowly grinding out a consistent profit or a random walk through a minefield etc? There were a couple of sites mentioned...do you still like them? One of the sites makes some extraordinary claims. Is pair trading time intensive in that one has to watch the computer all day? Any information you are willing to share would be appreciated and I hope I'm not getting too far off topic.
Bill
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