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Hey, I have the same data above -.73 on the 2 month DNA/MRK correlation I'm no pairs trader, or expert in stats, but I don't really understand what your graph is. Is it a kind of graph of the difference in prices?

i just glanced through ami broker a while ago for a bit and didnt see anything build in for automated trading, although they probably have third party stuff, etc etc, or i could just be missing the obvious feature. wealth lab has the IB interface...

I hate the 95% loser statistic that gets thrown around. there is no other base to figure out what that means. no timeframe, no number of trades, nothing. Also, I would think the 95% "law" would apply to traders in general, and yes, that even means your aunt susie who places a few trades...

he's right though, all this thread will have is a bunch of biased opinions, and old schoolers saying "do what works best for you". Which is pretty much all ET threads come to think of it. But, lets see what happens. :)

sorry dude, i don't think theyre still waiting for the follow up on this thread after 3 years... so i wouldnt hold my breath for a response, but who knows...

With no positive integers x, y, and z such that xn + yn = zn where n is an integer greater than 2. At least that's what I use...

it seems to me most experienced forex traders trade off longer positions of several days, or 1-2 weeks, so they can take advantage of the trending in forex. just what ive heard...

Interesting post. Its not real surprise hedge funds are gaining in popularity. They have many more options and flexibility in their investments as opposed to mutual funds, liquidation arbitrage, shorting, private equity, etc. They have gotten a bad rep, and the blowups have been shit on in...

Ok, well i always calculate risk, and i use usually 1.5% capital risk per trade, but I usually don't calculate the reward. i should do this. but again, i guess it is impossible to calculate reward without a thorough backtest of your system and statistically significant data which can show you...

After the stop loss determination thread, I thought it might be nice to have a Risk / Reward thread, especially since I being an aspiring systems trader am not completely clear on the subject. I would imagine that R/R would be determined by your system, and the average win versus average loss...

Just out of curiosity, what is your "fixed period"? It sounds like a measurement of time, if so, I imagine you would have to pre-determine the expected time frame of a the trade? if it is a function of price, i could see that. Intersting stuff though, please elaborate if you can/willing.

I think this is what you guys were talking about in an easy excel format. Put in account total, risk per trade in percentage, then stick your buy price in there, choose your stop loss based on the charts, input numbers and buy the shares for your maximum risk per trade.

So you would not buy/short simultaneously? I remember reading somewhere that you said your strategy is intraday. How long do you usually hold your positions?

This is good stuff. Thank you for sharing. I am an aspiring systems trader, and finding it all quite interesting how it works. Unfortunately I don't have the data analysis plugin for excel so i can't make histograms for your data set... I'm suddenly getting flashbacks of forgetting my...

Interesting link too. I'm curioius what data they ran their correlation on though. I ran some on CHE versus CHTT based off based off 2 year EOD and trailing 12 months EOD on the adjusted close, and I got a different coefficient than they did, but I didn't see anywhere what data they use. I...

Just out of curiosity, since I have never pairs traded, what correlation coefficient would you guys consider appropriate for "correlated pairs" and what divergence percentage or other criteria do you use for determining setups?

Ok, im new, so be gentle. If any of you have read http://www.amazon.com/gp/product/0262072262/qid=1137986292/sr=1-1/ref=sr_1_1/103-1614200-5600649?s=books&v=glance&n=283155 which is a book on the mathematics of divorce & marriage, and basically this professor observes and videotapes a...

i would hate to see you do pairs trading....

If I had to guess, I would guess most "profitable" traders would be SJ guardians, just because I believe they would be most likely to pursue MBAs at prestigious institutions and go the traditional Wall St route. Some NTs thrive in settings like that, but as we all know, academics and Wall St...

Interesting there are so many INTJs. Especially considering how rare this type is in the general population. The NT prevalence doesnt surprise me so much, as this board seems geared toward "do it yourself" retail traders, and market analysis would attract NT types in the first place. I'm a...