My Pair Trading Journal

Ulla,

Half-Life for this pair is around 70 days. So it take longer to get to that point. Well, it can even come quicker...no problem.

But technically, I exited because got decent profit, and now it is better to find opportunity in another pair.

I shall also try to enter it again, but in the last 3-4 days, both went straight in one direction. So, waiting for a favorable Fibonacci pullback, at least 38% in each of them. If that happens jointly, I shall enter again....if by that time, better pair is not available.

GG
Hi Gulu,

Yeah.... I agree with your point. Whenever it shows a decent profit close the position n take the profit & don't worry about what’s happening next day…..and I believe it’s all about ‘Trading Discipline’.

Happy Trading!!!!
 
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GuluGulu

Well-Known Member
Yes ulla,

Its all about cut our loss fast and let the winner run until it can. So I stopped at 30K at some technical point - because it was decent profit, and as the HL is 70 day, I didn't take further chance.

Anyway, you waited and got more rewards. Beautiful. We now should not worry even if it moves another 20K in our favor....and concentrate on other developing pairs.

GG
 
Yes ulla,

Its all about cut our loss fast and let the winner run until it can. So I stopped at 30K at some technical point - because it was decent profit, and as the HL is 70 day, I didn't take further chance.

Anyway, you waited and got more rewards. Beautiful. We now should not worry even if it moves another 20K in our favor....and concentrate on other developing pairs.

GG

Yeah exactly….

Today onwards I’m going for a 1-week vacation n so I won’t enter new trade.

Enjoy!!!!
 

GuluGulu

Well-Known Member
Entered the following Pairs Trade:

Long KOTAKBANK 500 @ 672
Short YESBANK 500 @ 507

Holding Period can go from 1 day to 3 months depending on profit. Half-Life is 60 days.
This is the beauty of Pairs Trade. Market direction less.

Today morning, Nifty now trading around 62 points below. High gap down. The above pair is showing 625/- M2M loss as of now.

So, I intend to study this pairs trading more and more and protect my capital.