Pairtrade Finder

Arb888 · #1 27th September 2008, 10:35 AM

hi, ive been studying pair trading recently, thus looking for opporunities between NSE stocks and their futures, buy the stock & sell the future or buy the stock & sell another similar future, ive been looking around and found this site www.pairtradefinder.com they apparantly support NSE stocks for pair trading which would be good for us! Program looks quite effective from first look. Has anyone tryed them before?

Arb888 · #2 27th September 2008, 01:28 PM

i downloaded their free trial to see what program is like and ive been playing around with it, the signals give some pretty nice trades(see attached), what does everyone think of this program for pair trading?

farhad101 · #3 29th September 2008, 06:44 AM

hi there, you say above there are some good trades, however i can't seem to see them in that attachment?

Arb888 · #4 1st October 2008, 05:14 AM

Farhad, look in the price data window on the left hand side of the attachement. The green highlighted cell means go long, the red highlighted cell means go short and the blue highlighted cells means exit position.

farhad101 · #5 2nd October 2008, 12:01 PM

thanks arb, that makes sense now to me

can i ask, how are the signals generated, i mean what makes them trigger? why are there always two signals at once? thankyou in advance.

Arb888 · #6 3rd October 2008, 07:38 AM

farhad, there are always two signals given together because the program is designed for pair trading. pairs trading is when you go long one stock & short another similar stock(or future) at the same time and exit at the same time. so you want pairs above 70% correlation, the program will generate a signal when the pair diverge and will give an exit signal once the pair converge, most hedge funds trade this style(arbitrage). read this guide www.pairtradefinder.com/pairTrading.pdf for a better explaination on pair trading.

farhad101 · #7 4th October 2008, 07:52 AM

thanks arb that all makes sense. i can truly see benefit in this trading type. im going to download their free trial this weekend and try and find some trades me too. thanks!

farhad101 · #8 4th November 2008, 10:31 AM

well i bought their software and have already made back 3 times the cost!!! glad you brought this to our attention arb888!!! thanks again. one question though, do you find the entering trades on the open or close to be better?

Arb888 · #9 8th November 2008, 09:59 AM

Quote:

Originally Posted by farhad101

well i bought their software and have already made back 3 times the cost!!! glad you brought this to our attention arb888!!! thanks again. one question though, do you find the entering trades on the open or close to be better?

i prefer the close, there is more liquidity at that time and prices are more stable with tighter spreads and better size to hit the bid or lift the offer, also most news is already out at that time to mitigate that risk, plus prices generally settle down around close time so a in-efficiency at that time is more significant, although the open does throw up some pretty good opportunities because of large orders that have qued up and start executing causing divergences.

msdigitall · #10 13th November 2008, 07:47 PM

arb888,

ya this software is very good, if u notice the demo view, they are clearly mentioning the apple to apple scripts,marketcapital etc before comparing,yes barthiartl and tata motors are different segment,which will have different news,earnings,guidance etc, so it wont work out really, so compare the same segment, am attaching pnb-sbi as of today, jus observe and give ur feed back.(sorry i dont know how to attach the file)