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I saw your trade above, long AXA short PUK. Recently I have had to adjust my pair system which has been grounded by RSI. Given the majority of all my stocks within my pairs now trade at RSI lower than 40 I wasn't generating any trade alerts since I like my stocks to have an RSI between 40 and...

I get this question a lot. Here's what I do. I like to have 20-40 pairs going at a time. I trade small. 5k-10k per side. If the pair is going against me, I check the RSI. For example....If I bought the pair with an RSI of 65 and the pair is going against me the RSI should be increasing...

I know guys that trade intraday pairs, but you need to automate the execution process in order to get the best fills and then you are also setting tight stops and profit targets since your time frame is much less. And then if you are trading just intraday it becomes a game of volume. You...

Contact Bright Trading. They have an affiliate office in Boston. Nice group.

How's trading going Johnny? You still high and profitable on pairs?

Hey Johnny cash, Sounds like you are a very satisfied since you are beating the S&P. My question to you though is that the last time you posted your P&L you mentioned you were carrying losses and underwater, but albeit less than the S&P. Typically traders are in the game to make money...

Anyone hear about about leverage and buying power being affected for prop traders? Hope not.

Its interesting that wherever I read, traders and investors are expecting a huge snap back move. If everyone expects it than perhaps it could come true, but often the contrarian wins. I will be happy with a flat day. From what I have read, do not expect any major g7 announcement till...

I've been reading some interesting articles about how Goldman Sacs and other major banks are changing the leverage rules for their hedge fund clients and Broker Dealers. http://www.dailykos.com/story/2008/10/11/21429/507 Can anyone who trades prop with a registered broker dealer comment on...

"I have noticed my current portfolio has a weakness bias to the market going down, something il have to investigate further to see if i can improve on." Hey johnnycash, love the name by the way, I think the bias you are seeing is because the market in general has been one sided and that is...

Congrats on your winning trade(s). How's your realized and unrealized P&L looking since you started about 5 weeks ago?

Talk about having to scramble on this pair. Was underwater for most of the day. The pair at one point was profitable for about 5 minutes. When the Bill was passed MOS started to turn south. Luckily I had a stop put in on that half as it was the profitable half and got out at 41.85. I then...

Couldn't resist this pair trade... Long MOS 40.94 Short MON 80.58 MOS is taking it on the chin. I'm a little bit early on the trade, but we'll see.

No alerts for this type of trade today based on yesterday's close available in my database. But if you have any questions about the strategy, I'd be happy to elaborate. The concept is actually very simple. Buy correlated pairs when they are at the mean, but be long the stronger stock and...

Interesting Pair Johnny with the PHM and TOL. It is one I track as well. I had the reverse on today and did well with it. Several weeks ago, I added a new screening criteria to my system. In addition to looking for pairs that have deviated more than 2x away from the mean, I also look...

GGSAE, Are you the one who trades through the Bright Vancouver office? Just curious as to how things are different, deal wise versus being directly under Bright. Thanks.

Its been very tough. Mean reversion has not been working. I've changed my pair strategy based on the 14 day RSI and looking for a RSI spread of at least 10% and going long the stronger and shorting the weaker expecting the stock spread to continue widening. Still looking for strong...

Seems like there are imbalances and often lag times bewteen pricing. Curious how people might be doing it?

Hey Johnny, There are many option strategies to play spreads. The most applicable that compares to dollar neutral strategies is the straddle. Buying a call and a put at the same strike price at or near the money. The safest way to do this is to buy an expiration at least 4 months out. In...

Morning Gehko, I think you mentioned you trade with Bright's Vancouver group. Just curious as to what the difference is between trading with them versus being direct with Bright? Thanks for the insight.