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  1. C

    Pair Trading Strategy Journal

    Yeah exactly what I was thinking... Just wonder why it is even there, unless I have completely missed something
  2. C

    Pair Trading Strategy Journal

    I am not talking about the ratio chart...I am talking about the spread chart. ie..... ABC minus XYZ not ABC divided by XYZ
  3. C

    Pair Trading Strategy Journal

    Yeah the ratio chart has to be one of the most important for sure. But that wasn't my question. What can you gain out of the actual spread chart? and how much weighting do you give it? The only reason I ask is it's one of the default charts when you initially download so it must have some...
  4. C

    Pair Trading Strategy Journal

    How much attention do you guys give the spread chart? (eg. ABC - XYZ) I was under the impression a trending spread chart is a bad sign? However if we have stoc ABC @ $100, Stock XYZ @ $10 and they both gain 20% over 3 months.......the spread blows out from $90 to $109 and would most likely...
  5. C

    Pair Trading Strategy Journal

    I feel it's critical to research of fundmentals. You need to put in the effort..... Often you get a massive divergence from a historical correlating pair.. It looks like the perfect setup through PTF and "ENTER" will be flashing all over the place. All it takes is a little effort to...
  6. C

    Pair Trading Strategy Journal

    Is there a possibly that they have a higher minimums on market cap also? i.e They wouldnt touch pairs with stocks less than 5b, due to liquidity? The size they trade would probably drive smaller cap pairs back to the mean straight away Whereby retail punters have the opportunity to take...
  7. C

    Pair Trading Strategy Journal

    Also Johnny, As your account is up over 100%, have you began increasing your size? If not are there specific reasons?
  8. C

    Pair Trading Strategy Journal

    Good points, keen to see peoples Also, once I build my universe of pairs, the database remains quite static. There may be many great quality pairs that showed low correlation / loss win $ ect ect during my backtest and I have missed. While others that showed great stats during my backtest...
  9. C

    Pair Trading Strategy Journal

    Well i've just spent the last 3 days reading this thread from post one nuggets of gold EVERYWHERE. Thanks Johnny and the rest for everything I have a question for Johnny, How much emphasis can I put on winning %? Often i'll find stocks that correlate 40-50-60% however have a win ratio...
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