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Yes this has been discussed at length, I don't use cointegration I use correlation and only trade pairs over 80% correlation, mostly over 90%, some use cointegration and thats fine, whatever works for the trader I guess.

Strangely enough over the last year GE/PFE has made more than XOM/CVX, although I don't trade either pair.

Exited one trade today; Sold AGU @ 30.59 Covered CF @ 52.30

Closed one trade today; Sold COL @ 31.78 Covered ITW @ 30.84 Opened 1 new trade; Long STM @ 6.10 Short MXIM @ 11.81

They backtested well, this trade was based purely on high technical correlation plus I liked the ranging ratio chart, glad I took the trade as it turned out to be one of my best pair trades to date.

Interesting concepts GGSAE, will have to investigate this further myself, thanks again.

I don't subscribe to their newsletter, I find my own trades so I can't comment on that, I can say that im up 44% since starting this journal using the entry & exit signals from the program, so its working for me.

Closed one trade tuesday; Sold GDX @ 25.69 Covered GG @ 24.74 Closed 2 trades today; Sold AMT @ 27.18 Covered TV @ 15 Sold BAX @ 53.27 Covered GENZ @ 64.71

yes agree, would you care to expand on dividend pair trading? thanks.

Yes generally the pairs take on some heat before returning to their mean, I think the average trade lasts about 7-10days and I exit strictly based on pairtrade finder signals, I only use discretion when choosing entry signals.

Overall profitability is great, im still up over 30% since starting this journal. I know there is some dislocation occuring out there, however ive managed to put on some good trades, plus when things normalize thats when pairs quickly return to their mean.

Ive got the version2 beta, im part of a group that is testing it out, you could try emailing them to see if you can test it out too.

Yes equal dollar amounts on each side, im of the opinion that if you have to adjust size for volatility of each stock then the two stocks are that closely related, ideally they should have similar volatility because they are in the same industry. No I like to keep it simple and only trade...

Exited one trade today; Sold ABX @ 21.12 Covered KGC @ 11.13 Entered 3 new trades today; Long AZN @ 36.84 Short DGX @ 43.94 Long AMT @ 21.58 Short TV @ 13.79 Long BAX @ 53.37 Short GENZ @ 68.00

Exited one trade monday; Sold DVA @ 51.88 Covered AZN @ 41.55 Opened 1 new trade; Long BIDU @ 134.09 Short GOOG @ 300.12

Exited one trade today; Sold AET @ 23.33 Covered AGN @ 35.66

Exited one trade today; Sold ACI @ 16.05 Covered CNX @ 23.15 Opened 1 new trade; Long HES @ 50.72 Short APC @ 35.16

yobo, yes my pairs and profits are still holding up and doing well.

I know there are a few books on pair trading, read one of them and was disappointed, honestly you can find everything you need on the net, here's a list of pair trading articles I keep in my favourites folder Pair Trading Articles

One trade on tuesday; Long COL @ 33.55 Short ITW @ 32.26