Easy Pairs Trading Scalping Strategy

Well...I guess part of the problem here is that you really have no idea what you are talking about....and clearly you have no idea what we do.

Cyborg is a trade management tool....that is combined with DISCRETIONARY trading...it's NOT a black-box trading system.

Unfortunately I'm not a mind reader...so it would be impossible for me, or anyone else to know when/how you use a Cyborg strategy...
 
Quote from CyborgTrading:

1. Take highly correlated products like SPY/SSO, or some ETF short/ultrashort pairs.
2. Put bids/offers out in the spread market a few cents out of market and wait for the products to get out of wack
3. Play the mean reversion.

The only thing this strategy requires is an autospreader fast enough to capture these small price deviations....you almost can't lose.

Thoughts from all the pairs traders out there?
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Your system does not work at anything less than a daily level, because the "magic number" that represents a deviation large enough away from fair value to exploit is not sufficiently large enough to overcome situations where it keeps trending against you. Pairs trades are not intraday scalps. They are daily scale swing trades. And you want to use perfectly negatively correlated pairs, not spy and sso, but sds and sso, likewise for QID and QLD.

See my thread if you want a more in depth explanation.

Pairs Trading QID QLD Scalper is the best pairs trading system in the world, with the following results at 96% of equity from QID and QLD's inception 6/16/2006:

Long + Short
Starting Capital $100,000.00
Ending Capital $637,853.61
Net Profit $537,853.61
Net Profit % 537.85%
Annualized Gain % 77.71%
Exposure 24.06%

Cash Interest $0.00
Margin Loan Interest $0.00
Total Commission ($1,240.00)
DividendsPaid $0.00

Number of Trades 78
Avg Profit/Loss $6,895.56
Avg Profit/Loss % 2.56%
Avg Bars Held 2.62

Winning Trades 58
Winning % 74.36%
Gross Profit $902,221.06
Avg Profit $15,555.54
Avg Profit % 4.74%
Avg Bars Held 2.79
Max Consecutive 9

Losing Trades 20
Losing % 25.64%
Gross Loss ($364,367.44)
Avg Loss ($18,218.37)
Avg Loss % -3.76%
Avg Bars Held 2.1
Max Consecutive 4

Max Drawdown ($125,159.69)
Max Drawdown Date 8/17/2009
Max Drawdown % -17.45%
Max Drawdown % Date 8/17/2009

Wealth-Lab Score 266.6894
RAR 323.063
Profit Factor 2.4761
Recovery Factor 4.2973
Payoff Ratio 1.2596
Sharpe Ratio 2.0187
Ulcer Index 5.0002
WL Error Term 6.213
WL Reward Ratio 12.5084
Luck Coefficient 3.4036
Pessimistic Rate of Return 2.5933
Equity Drop Ratio 0.0438


Feel free to post your results if you want a side by side comparison.
 
Well this system is designed to work at a daily level (milliseconds). Get in and out as fast as possible....

And yes...perfectly correlated pairs (or inverse)...is obviously best....I was just giving some examples of highly correlated pairs.

Does that change your opinion of it?
 
Quote from CyborgTrading:

Well...I guess part of the problem here is that you really have no idea what you are talking about....and clearly you have no idea what we do.

Cyborg is a trade management tool....that is combined with DISCRETIONARY trading...it's NOT a black-box trading system.

Unfortunately I'm not a mind reader...so it would be impossible for me, or anyone else to know when/how you use a Cyborg strategy...
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caught you in a lie

Cyborg is used for testing back and forward

and every little detail ends up in Cyborg main server

Here is email from BEN
_______________________
My name is Ben, I am your first point of contact at Cyborg Trading.

With Cyborg Groups you can shares strategies at your discretion either publicly or privately.

_______________________

and you expect people to believe that sharing with Cyborg mother server is not being done

you'll find real traders to be smarter than average buddy

you are new you don't know that yet
 
If you don't want to share a strategy, thats up to you....All strategies are stored on your local HD, so in the end if you are paranoid about anyone seeing your risk management strategies then don't share it...

But your still missing the point. Even if I could see your Trade management strategy it's USELESS to me or any other trader...

It's only one small piece of a trading strategy, and you can use a risk management strategy in a million different ways. It's almost like giving someone a key, without telling them which door it'll open.
 
Quote from CyborgTrading:

If you don't want to share a strategy, thats up to you....All strategies are stored on your local HD, so in the end if you are paranoid about anyone seeing your risk management strategies then don't share it...

But your still missing the point. Even if I could see your Trade management strategy it's USELESS to me or any other trader...

It's only one small piece of a trading strategy, and you can use a risk management strategy in a million different ways. It's almost like giving someone a key, without telling them which door it'll open.
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NO you are missing the point and I will spell it out for you

I DO NOT TRUST YOU AND YOUR WORDS

why do you even have built in sharing

what ? you think real traders are share loving bunch ?

you make me laugh

good luck going over the collected code of Noobs (your only customers), it will get you nowhere


I'll help your business out, here's a tip, REAL trader's main concern is security

make them really think security is tight and you'll be able to get a real trader to spy on :cool:

See I just helped you a lot
 
Well...lotsa other programs have the ability to share strategies. Trade-Ideas for instance has something called collaboration....Some traders like working together as a team...maybe you've never worked in that kind of trading environment before.
 
Quote from CyborgTrading:

Well...lotsa other programs have the ability to share strategies. Trade-Ideas for instance has something called collaboration....Some traders like working together as a team...maybe you've never worked in that kind of trading environment before.
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you are by no means the first one collecting information on traders

I always find it fascinating how people like you (software jockeys) assume you'll get good strategy by sheer numbers

you always underestimate successful traders

if they are smart enough to outsmart Goldman and others in ES and other futures markets

why would they fall into a simple trap some software jockey set up for them

don't underestimate a successful trader in today's market

good luck
 
you either a) trade extremely highly correlated pairs and get eaten by commission and slippage on the retail side or b) you trade highly correlated pairs and generally make money but still run the risk the pair completely blows out.

BUT there is nothing such as "no risk" "almost no risk" , "strategy can't lose" such as what you claim.

I think you should advertise your services in a slightly more prudent and professional way...to say the least...

Quote from CyborgTrading:

Right, which is why institutions do THESE kinda of trading strategies...it's all about technology and the better the technology is the easier it is for them to make money. The strategy in itself can't lose...

Makes you wonder how many other strategies just like this are out there. You can just print money, providing you are willing to invest in the technology. But then again, isn't that what trading is...and always has been about?
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absolutely right. And no co-located solution will change that as long as you pay any kind of retail commission.

I agree I find such comments by Cyborg pretty unethical and borderline to snake oil techniques.

Quote from TraderZones:

He inherits $400 million, becomes an institutional trader, etc.

Otherwise, for the person with a modest account (likely 99% of those here) he does not follow the strategy you are suggesting.

There are plenty of ways to learn trading, emulating the big boys is not for the small trader. And it is not the easy road to money as represented, above.

Unless you plan to publish verifiable account statements and track record showing how easy it was for you on a longterm scale.
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