haircut charge

[Cre8UrF8]

Quote from magicz:

I am sure if you going to hold for something that long you obviously have an edge to beat the interest or else you're pretty stupid to draw that much capital to let it sit and pray.

With Pairs Trading you can be in a position for 6 months to a year. You can ask the guys at Pairsco.

 

[magicz]

then hopefully they have an edge that make them money.

 

[GGSAE]

Quote from Cre8UrF8:

With Pairs Trading you can be in a position for 6 months to a year. You can ask the guys at Pairsco.

Hey retard, most pairs' traders don't carry 30 times their account in overnight. I'll scale into 20-40 (on busy days) times intraday and carry around 5-6 times in total overnight. Very seldom do i carry a position longer than a few days.

 

[huge230]

Quote from GGSAE:

Hey retard, most pairs' traders don't carry 30 times their account in overnight. I'll scale into 20-40 (on busy days) times intraday and carry around 5-6 times in total overnight. Very seldom do i carry a position longer than a few days.

So you do quite a bit of intraday pairs trading? I am just learning about pairs and have read that it is alot harder intra day so just asking

 

[Lights]

GS charges fed funds + 1.25% for debit interest? does this assume that one must have a hedged position long/short? what do you/they charge for 100% long overnight?

Quote from Don Bright:

GS debit interest = 6.50 (approx), and credit interest paid = 4.75 - 5% depending on whether the credit is cash or short stock sales.

So you have another 1.5% or so differential - still get 6 times your equity with no haircut.

As floor traders, we loooooved doing reversals, especially back when we could get 15% on the short stock interest (1980's of course).

As interest rates (carry costs) change, opportunities do pop up.

As I said, you have all the facts...shall I send a registration packet to your home or to Vtrader? LOL.

Don

 

[GGSAE]

Quote from huge230:

So you do quite a bit of intraday pairs trading? I am just learning about pairs and have read that it is alot harder intra day so just asking

Ummm i don't know if harder is the appropriate word to use...perhaps specialized? I started trading from a longer-term perspective in pairs and completely changed my methodology to what i'm doing now - It's very quantitative, that's all i'm gonna say.

 

[huge230]

Quote from GGSAE:

Ummm i don't know if harder is the appropriate word to use...perhaps specialized? I started trading from a longer-term perspective in pairs and completely changed my methodology to what i'm doing now - It's very quantitative, that's all i'm gonna say.

Thanks for the reply. IS intra day pairs trading common or do most people have a longer time frame?

 

[sandy1]

This is the program I use:

www.daytradepairs.com

Its a plug-in for Tradestation. I have been using it for 2 months and have made very good money using it.

Sandy

Quote from huge230:

Thanks for the reply. IS intra day pairs trading common or do most people have a longer time frame?

 

[Don Bright]

Quote from huge230:

Thanks for the reply. IS intra day pairs trading common or do most people have a longer time frame?

By spreading out the overall risk by adding more pairs to the mix, we have the opportunity to snag quite a bit of intraday "noise" and will likely have several "day trades" each day in, at least, a few of our pairs.

By having pre-determined entry/exit levels this activity can be triggered easily with our spread sheets. This additional activity has added greatly to the bottom line of our pairs traders.

In addition, we tend to leave one "layer" on all the time so we can take advantage of longer term trending of each pair that is going in the correct direction.

Because of the profits that can be made by pairs trading, we have been including pairs trading in our 3 day class here in Vegas. By having access to the database provided by Bright/PairCo, a lot of the grunt work has been eliminated for the traders.

Don

 

[huge230]

thanks for replying Don