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Two new trades taken on Friday; Long XLNX @ 18.06 Short ALTR @ 16.51 Long BIDU @ 191.22 Short GOOG @ 339.29

Yes I do, no hard rule in place, I use it on case by case basis, in your example I would want to be long the 5b stock and short the 50b stock to mitigate takeover risk.

Closed one trade today for good profits, made 3pts on each side; Sold HES @ 53.87 Covered APC @ 30.62 No new trades.

By 30% I mean if the ratio is at 1.00 I don't want the 6month low below 0.85 and the 6month high above 1.15, not a solid rule but a general rule, also I don't want to fade the direction of strong ratio trend that generally occurs when the ratio is making new 6month high/lows.

Thanks Surfeur, I imagine you could pair trade forex, however forex is already in pairs, in your e.g. trading those two pairs would be the same as trading EUR/GBP. Id rather pair trade stocks as there's 1000's of liquid stocks giving millions of possible pair combinations so you can really hone...

Screenlocal, I trade $$$ neutral. I tend to like pairs that have similar share prices, I wouldn't trade a $100 stock against a $10 stock.

Entered one new trade today; Long TV @ 16.35 Short OMC @ 33.39

No problem, I used Yahoo Finance stock screener and added every stock above 5billion mkt cap from each sector into a new stock group, then I ran backtests and added every pair above 70% correlation to my watchlist. Then I filter out pairs based on fundamentals, you don't want to pair trade a...

thankyou, yes PnL is important to me, I not only trade for the intellectual challenge and pleasure but also I want to make some good $$$. My win % is 73% and win/loss is 0.71 so that answers your question as too whether im profitable. I don't like posting my PnL because it changes daily plus I...

Thanks for that. Not sure I understand your question correctly, so il try my best. I use pairtrade finder to find suitable pairs through backtests and then add pairs based on high correlation and confirm with fundamental correlation(same industry/sector), then just before the market closes...

yes usually I enter both sides at the same time, sometimes if the market is moving strongly in one direction which can happen around the close il put on the side in that direction and wait several minutes before putting on the opposite side, most of time I usually lower my cost average doing...

thanks yayt, yeah the method is robust espically through uncertain times. I don't keep detailed statisical info, I can say from memory I don't think ive been down more than 8% since starting and that was during that crazy week of volatility.

Thanks yobo, you have been the most regular contributor to this journal and I appreciate that. Yes several weeks ago I was slighty down, however now Im up 21% so yes I am profitable. I'm not using pair trading to make a living atm, Im using it to grow my capital, although I expect next year or...

Just a quick update on my progress so far since starting this journal. Wins 25 Losses 9 Win % 73.5% Win:loss 0.71 Ive outperformed the SP500 by a whopping 46% since starting this journal also with significantly less volatility & exposure. It's amazing how you only need a small...

www.pairtradefinder.com

Yes I use Pairtrade Finder. Its been working very well for me, I started a journal on the 18th August http://www.elitetrader.com/vb/showthread.php?s=&threadid=134253 to document my trades and so far Ive outperformed the SP500 by a massive 46% with less volatility & exposure aswell, not bad if...

I eyeball the ratio chart on the pair analyser tab in the program. I don't want the ratio chart to be trending, I want it to be in a wide trading range that is no bigger than 30% of the ratio, also I don't want to take trades on new ratio highs or lows, and I want to see an general oscillation...

Closed my best pair trade on thursday and showing significant profits since starting this journal; Sold MOT @ 5.61 Covered JNPR @ 16.58 Opened one trade today; Long HES @ 50.58 Short APC @ 33.50 Open trades: 6 Wins: 25 Losses: 8

thanks irucken, Yes data is delayed, when I get a signal, I check realtime prices in my broker platform and as long as they haven't converged significantly il enter the trade, a lot of the time il get better prices than when the prices in pt finder when the signal was generated, so i guess it...

Exited one trade Wednesday; Sold ALTR @ 16.95 Covered XLNX @ 19.49