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WHR/MAS Let's keep swapping ideas here...

DE/CAT BMS/SON

Here is a scenario for discussion. What would you do? Let's take freight services, ie UPS FDX EXPD & CHRW. They are all good correlation stocks. FDX has already given earnings and wont again before autumn. UPS gives earnings on 23 July. CHRW gives earnings on 21 July. EXPD gives...

BJS:SPN looks interesting, although SPN tends to be a more volatile and higher beta stock than BJs or HAL. This looks to be a good example of a trade whereby you need to introduce some beta hedging into affairs.

I am interested in whether pairs trading is a directional strategy or not. What are others experiences with this? I'm finding that ever since the S & P turned downwards in mid June that it has become harder to find profitable pair trades, and I keep getting stopped out of positions. In the...

ORCL/MSFT JACK/YUM LRCX/AMAT

I believe the pairs trading he refers to in his articles are with commodity ETFs. In these pairs the underlying fundamentals haven't changed, because the pricing of the commodities within the ETFs is the same. Therefore the price relationship is not a reflection of an underlying fundamental...

Dr Who, thank you for your response. I confess that I am impressed by your results and that you are inding significant numbers of UK trades to monitor. What kind of stocks are you looking at?

The advantage of this trade is largely because some hedge funds follow this strategy, and so they help to close the 'pricing anamoly' for you. AKZO/BASF is in play in Europe. Is anyone else interested in trading European pairs?

AZO/ORLY & QCOM/BRCM in play.

SBRY.L/TSCO.L in play

SCHW/AMTD in play. Double Signal.

KMB/PG in play

Guys, This is a fair point. I'm trying to develop some Continental European and UK trading pairs. I'd appreciate some ideas on this front. For example, in the UK at the moment, I only have... ANTO/BLT BP/RDSA GSK/AZN IAP/TLPR PRU/AV SBRY/TSCO WPP/AGS

I think CFD's are the only realistic way to trade. You can read up about the differences between the two elsewhere and, dont take my word as gospel. However, I think that all you need to know about spreadbetting is expressed in the following sentence. Spreadbet co's are effectively...

IAP.L/TLPR.L & AGU/POT in play

Dr Who, I'm interested in your trial. What is you overall Win/Loss Probability? You seem to suggest 69% Furthermore, what is your average win/loss ratio ie the average of your winning positions divided by your losing positions?

When I saw OSTK/EBAY mentioned, I was initially surprised because I know a bit about the history of Overstock. I won't go into it, but you can read here... http://en.wikipedia.org/wiki/Patrick_M._Byrne ... so it's no surprise to me that OSTK share price was being moved around by...

Am not using PTF. I use excel with data fed into it automatically, although would appreciate info on a more all-encompassing piece of software than PTF. With a Gaussian distribution curve the difference in probability from a 1* event to a .5* event is much smaller than that from a 1.5* event...

jonnysharp & others- As I understand it, you close the position when it goes back to the mean. Have you thought or backtested other methods of exiting? Let's say closing the position at one stddev from the opening, at either a profit or a loss. So for a winning trade you are trading from a...