Recent content by magon

killer04, This is a tought question, the best you can do, I guess, is just look for news about the stocks and see if there is a real reason for the divergence.

I agree, I like to select the PTF Alerts and also I like to run PTF program and select my picks by sorting the pairs by the sigma (< -2 and > 2) then looking for correlation > 70% and RSI <30 and >70 respectively. I usually have from 4 to 6 pairs at a given time. I also look in the trigger...

If you enter the same amount of money per side, the smaller price stock would have a higher coeficient and the profit equation, and then this price spread doesn't have any meaning, I just care about % movement. Have anybody bought the autometed excel spreadsheet yet? Do you think is worth...

On PTF they call spread to the difference between the stocks value and they show it on one of the charts, is this what you are refering to? In my opinion this value is no usefull at all. I call spread at the % from the mean value, and this is an indication of the money you can make on the trade.

The chart is telling me to wait until ratio approx. 1.065, the ratio haven't touch the mean value yet.

There are several principles used to select the pairs, but the one pairtrading finder uses is based on the standard deviation, if you asume complete ramdom samples 95% of all samples will fall in the range of 2 standard deviation from the mean value of the samples, this is considered a normal...

That's something that I haven't figured out yet, I have noticed the difference when I takes my picks from PTF and then plotted on stockcharts, (I use this urls on my blackberry to check my pairs). I don't have a third ratio chart to compare with. BD1, Are those ration charts at prophet.net...

I do like PEP:KO I just would wait until that ratio had a positive day to get in, right now is getting stabilized, the fundamentals are in favor of the pair, we'll see !. I'm checking a couple of pairs using option spreads as somebody here was recomending. I think it is good idea because it...

Thanks BD1, It's very interesting to see how the Difference (1.98*CPT-AVB) chart is so close to the ratio chart (CPT/AVB), actually on TOS you can see the normalized difference, correlation, ratio, RSI and Bollinger Bands on one screen. I created a SET on the Studies. Question: How can I...

Closing a loosing pair CGV:HAL, (-6.6%) however, I should have close the trade on NOV 9, but these two stocks individually, look well in a possition to have some ratio gains but I'm entering a new one MUR:EPE, I was looking at ALY:SWSI that looks better, this pair started to turning around...

No Nick, the attachment is a from stockcharts http://stockcharts.com/h-sc/ui?s=MR:RMD&p=D&yr=0&mn=2&dy=0&id=p15397019185 I used 11 days moving average for the RSI and Bollinger Bands, I think this what Pairtrading Finder uses. I picked a bad pair (CGV:HAL), but today it turned around a...

cipherscribe, you didn't get out on the OCT 22 when the ratio intercepted the moving average, and you had some profit. That happen to me alot ! no sticking to the game rules.

Here it is: http://www.pairstrade.com They have a 14 days trial before buy it.

Pairtrading with SHADOWTRADER using charts at www.thinkorswim.com. picks for $20.00/month

Lets see how buying 6 months call and put works with pair CGV:HAL. So I'm buying 3 CGVDX (APR20C) and 4 HZLPF (APR30P) for a debit of $2290.00, which is most of it, time value only. At least you know that the max amount you can loose. and it does not take a lot of margin in your account...