Pair Trading

Discussion in 'Advanced Trading Strategies' started by Big Short, Mar 7, 2015.

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  1. rahul321

    rahul321 Active Member

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    Hello BIG SHORT,

    I am really happy to see somebody so active in PAIR TRADING for that long time.

    Honestly speaking I also trade dedicatedly only PAIR TRADING methodology for last 3 years.

    I wasted my initial 4 years for nothing but USELESS AFL'S, TRADING SYSTEMS, INDICATORS , TIPS, CALLS ETC.

    NOW I TARDE ONLY PAIR TRADING BASED ON PRICE ACTION.
    HONESTLY SPEAKING ITS REALLY PROFITABLE WITH RETURNS MORE THAN 60 TO 70% RETURNS A YEAR.

    Calculation i include are a bit other than CO-INTEGRATION, and correlation is really useless.

    since by profession i am an engineer and a software coder too, so i have developed software personally for calculating profitable combinations and since i have servers in US so the system keeps running all the day for calculations.

    Since my trade capital is ample so holding trades is not much problamatic and ofcourse MTM management is main.

    I really appreciate your willingness to help people in here. hope we get in touch soon as i will PM you.

    I am also there to help everyone in any kind whenever required.

    take care all
     
  2. sr114

    sr114 Well-Known Member

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    Can u elaborate on the calculation part a bit more if u r willing to share that part

    rgds
     
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  3. Im2020

    Im2020 New Member

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    hey guys I am interested in learning pair trading. I cannot send PM to any one. I dont know how to send PM. Can ay one guide me with basics on pair trading?

    Thanks
     
  4. seetharamank

    seetharamank Active Member

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    Very interesting indeed.
     
  5. amitrandive

    amitrandive Well-Known Member

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  6. mastermind007

    mastermind007 Well-Known Member

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    Wow!!!! I had seen this concept being explained by words in myfno.com site but this chart is 1000 times better...
     
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  7. pairtradepro

    pairtradepro Member

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    This is the pair trading system that I have been using. Users can backtest their pairs. It uses SD 2.5 enter trade and 1.5 exit trade. It has been profitable.
    [​IMG]
    There is a watch list section to find pairs that have generated signals.
     
  8. Smart_trade

    Smart_trade Moderator

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    Thanks for pairtradepro software.

    I see that there are few trades which have resulted in loss. Where is this stoploss level kept ? Meaning suppose you do a pair when the ratio is 2.5 SD does it have Stoploss of the ratio expands to 3.5 SD or some similar ratio ?? This is just to understand.

    I used to do lots of pair trades when I was using Metastock because in metastock you can plot indicators like RSI on the Relative Strength Comparative as input....but after shifting to Amibroker that facility I could not locate. This pairtradepro software looks good to solve this problem.

    Smart_trade
     
  9. pairtradepro

    pairtradepro Member

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    Currently I have not setup Stoploss as I use options for protection. But I will definitely add that feature to backtest. I am also adding feature to adjust SD value as user wishes to generate signals. Just want to make it a useful tool for pair trading. If you give your inputs I will see how to make into code.
     
  10. pairtradepro

    pairtradepro Member

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    This week in pairtradepro added some features in compare and backtest section. Now users can give input 1. Entry deviation, 2. Exit deviation and Lookback period. Kindly give your feedback. Coding for stopout is almost ready and will update you soon.
    [​IMG]
     

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