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The spreads are reasonable (i.e. eurusd = 2 pips), except for news events. However, every broker widens spreads during news events. Personally, the overnight interest is pretty bad IMO, although I haven't recently compared/shopped the interest with other brokers. I guess I should be satisfied...

What are your thoughts on Interbank Fx? They seem pretty solid... Walt

I don't understand why some believe the question posed by the OP is "amateurish" or "ignorant". As a matter of fact, Don Bright has stated that most of the six figure & seven figure traders at Bright average less than 10 cents per transaction share. Moreover, he originally stated that the net...

neke, Have you considered trading thru a Prop Firm? Great leverage (50:1)... gi ven your performances with little leverage, you probably would have been able to grow your account about 10 fold if you had the trades in 2008 leveraged at 50:1... Walt

Hi Don, I suppose that perhaps you didn't get the initial inquiry. Is this "rule of thumb" still good? thanks, Walter

Hi Don, Is this "rule of thumb" still applicable in today's market? thanks, Walter

Does anyone have extensive experience with pair trading the ETF indicies (i.e. SPY vs. DIA)? This seems much "safer" than pair trading stocks. No merger/acquisition fears; No earnings suprise; no major news to impact it the way a stock would be impacted; etc... Of course, the major downside...

Excellent points jonny... I guess my assumption was that very rarely would there be a divergence with the strong stock going down and the weak stock going up. If that were to happen, I would have to wonder if there is some event that I haven't learned about (i.e. merger/acquisition)...

When pair trading two stocks (preferably within the same sector), there's a MAJOR PROBLEM with the mean-reversion strategy. The assumption is that the two stocks will converge after diverging to a certain point. Oftentimes, layering-in is used to improve the performance of the mean-reversion...

what's the risk:reward on opening orders? (i.e. Is one loss often equivalent to about 5 wins?) thanks, Walt

Hi Don, Hopefully you have me down as one of the folks who has already registered for March 10th in Atlanta. Btw, I have a couple of friends who are also interested in attending. Do they need to e-mail you, or will this note suffice. Thanks, Walter

Hi Jonny, Have you begun to layer your trades as yet? I remember you stating that you were going to layer-in (average-in) during this year. Although it seems beneficial to layer-in, it does skew the risk/reward ratio. thanks, Walt

Hi Don, When will the subscriptions begin? thanks, Walt

those aren't my calculations; however, I believe that Jonnysharp stated that he has outperformed the S&P 500 by 102% since August of last year (the start of his journal). Walt

I guess that your exit signal comes from "Pairtrade Finder"? thanks, Walter

That's pretty amazing... kudos to you!!! Btw, I assume that thoses results excludes the drawdown on open positions. In other words, the roi is on closed positions only. If you were to include the current drawdown from the open positions, would your returns be as strong? thanks, Walt

Hi jonnysharp, I really appreciate your thread. thanks for your continued contributions. btw... what's your return on capital since last August (either the 5 or so months or annualized)? thanks, Walt

I'm sorry Mark, you're absolutely right... the risk/reward is identical... in the scenario with RUT. And of course, there's no need to worry about an early assignment, as it's an European Style. I guess the real issue is that most folks talk about option transactions otm. Very rarely are...

thanks Mark, I've read on other occasions that they are equivalent; however, let me give an actual example with the RUT. If I buy a March bull call spread (470/480), then I'll pay about $5 with the possibility of earning $10. However, if I sell a March bull put spread (480/470), then I'll...

Why are vertical debit spreads (bull call & bear put spreads) not discussed much? Instead, it seems that Iron Condors & credit spreads are the preferred topic. When you consider the risk/reward ratio of a debit spread vs. a credit spread, especially if both of which are about 2 or 3 strikes...