My Pair Trading Journal

[simpletrader2012]

hi gg
Be careful since Indus Ind bank is being included in Nifty Index so it may perform well for the short term....
IndusIndBK are set to announce Qrtly results on 18th.

 

[GuluGulu]

dear GG

this is nt pair trading at all coz u dont seem 2 put any sl of wtsoever type!
also, u hold till ur pair comes in profit is not trading.
ur only surviving coz u have huge capital to back it up!
otherwise, this way any retail will go bankrupt!

this is for retail guys http://www.traderji.com/position-trading/77971-my-pair-trading-journal-4.html#post770083

Possibly. Huge capital to trade with and taking less position is perhaps saving me by Grace of God.

 

[GuluGulu]

Entered a different flavor of pair:

Bought INFY 125 @ 2265
Sold SBIN 125 @ 2225

Time frame is positional.

 

[GuluGulu]

In reference to malghoft's post, I would like once again to tell you all that ....please do not copy my trades in your real A/c. I can't be responsible for any of your Profit or Loss.

For example, one of my last trade went against my favor to the tune of 67K. He pointed out real thing that sometimes a small retail trader can be bankrupt with that position. Even I can too. But my huge capital and Grace of God is still protecting me till now from such situation and I believe; I shall remain protected.

But everybody has different mindset and risk taking capacity. So please don't copy the trade. I cite once again...this is just a journal, i.e. records of my trades. This is not intended to teach Pairs Trading or any such thing, even if we all discuss technical stuff here occasionally.

Take care,

GG

 

[timepass]

Entered a different flavor of pair:

Bought INFY 125 @ 2265
Sold SBIN 125 @ 2225

Time frame is positional.

Strange, It looks like a contra trade, or is it ? These days SBIN is super hot while INFY is down in the dumps. You must know something that we don't .

Can you please tell us the reason for the same ? Is it related to USDINR ??

 

[GuluGulu]

Strange, It looks like a contra trade, or is it ? These days SBIN is super hot while INFY is down in the dumps. You must know something that we don't .

Can you please tell us the reason for the same ? Is it related to USDINR ??

Hi timepass;

Yes, it is a cotra-trade...you can say. Well, just watch this. There may need to average this trade at a different level, if loss from the first position reaches to 50-60,000/- or at a certain ratio.

But then, it will give good profit in the long run

Most of my Pairs trading, I am playing with a concept something like Grid-Pair Trading, perhaps nobody has tried this before. This is the success mantra. But you need a very huge capital to start with...and this is the negative for most of the retail traders.

Sorry...I can't disclose this much more technically. But I have seen, this is the most successful trading method ever devised.

If you start with 1 crore of capital...I can guarantee, your success would be 98%

Four refined internal logic works here:

1. Pairs-Trading
2. Grid-Trading
3. Support-Resistance Level.
4. Strict Money-Management.

4th one is most important. Any pair can deviate to 50-6-70,000/- from your entry point. For example the last Fed-Indusind Trade which is underwater 50K as of now. But 50K is just 0.5% of 1Cr. So, if you have about 10 different Pairs always running in a Grid fashion, so when each of the Pair ratio will go through that Grid...you will keep on booking profit everyday and establish new Grid.

Happy Trading.

 

[mangup]

Hi GG,

Is it possible to trade "Writing Call & Puts both of different strike price for Nifty" in ur pair trading methodology? Will it be advantageous as it will be sort of delta neutral strategy?

How this will be different from stock's pair trading?

How u view benefits/risk of Delta Neutral Strategy Vs Pair trading?

Pl enlighten us.

 

[timepass]

GG, suppose one is trading with huge capital, what sort of returns could this strategy give (returns in terms of % gain per month or so - average). I know that it is difficult to predict, but what percentage would you count as good profits as compared to other forms of investments.

 

[TRADERB]

GG,
Yes I also want to ask the same question . With 1 crore investment , 70 Lakh is kept @ 9% in FD and against it an OD facility to withdraw cash at will, remaining 30 Lakhs kept
in trading account and Yes bank saving account linked to Trading account ( you get 7 % interest pa ). How much will be the "expected" returns ......
Binil

 

[GuluGulu]

One would be able to double his capital in about 2 years safely. But it will vary to some extent. Safely because we are very much protected from market directional movement.