Pair for KLAC

Why would you pair a weaker stock like KLAC with NVLS ?

Why would you pair two stocks in same group, equipment makers ?

The 2 strongest stocks in group are NVLS and CCMP.

NVLS is up 80% off low, KLAC 58 % and look at the ADX'S of both
to compare strenght.

NVLS has adx of 42 and KLAC has adx of 24.

I would pair NVLS, with MXIM, LLTC QLGC or

ICST, VSEA second tier semi manufactures,
for better representation of SOX

( all trade over millon shares )
 
Originally posted by gbungard
Why would you pair a weaker stock like KLAC with NVLS ?

Why would you pair two stocks in same group, equipment makers ?

The 2 strongest stocks in group are NVLS and CCMP.

NVLS is up 80% off low, KLAC 58 % and look at the ADX'S of both
to compare strenght.

NVLS has adx of 42 and KLAC has adx of 24.

I would pair NVLS, with MXIM, LLTC QLGC or

ICST, VSEA second tier semi manufactures,
for better representation of SOX

( all trade over millon shares )
More...


yep..........NVLS and MXIM-LLTC...........go head pair them.......but dont cry later.

you may put it this way-if you think, market will go down, then you may short NVLS and long KLAC(only, if NVLS gain more than KLAC during last rally). if you daily chart % difference between them and compare to let say QQQ you will see, what im talking about. and after all-you have to know direction anyway)))))))

after all my research and actual trading i did not see any difference between directional and pair trading.
only two things make sence- non market directional, and second-you not going to see such swings in price on directional like you wil see, if you trade pair intraday. 3-5% swings in hours,sometimes even minutes.... QQQ is puppy.........

 
Originally posted by Eldredge


...I am making some adjustments to my methods right now, partially because of IB's change in margin requirements.
More...

what were the changes?

Thanks Royce
 
Originally posted by royce09


what were the changes?

Thanks Royce
More...

I was entering my positions in such a manner that I could ride out the normal range of the pair I was trading, so I would be in some legs of my position for a long time. I would close the latest portions as they became profitable, and these would offset the losses on the older positions. I would let some profitable legs run, and close out the whole position and reverse when the overall position looked good. Sometimes this would happen a few times in one day, other times it would be weeks before I would reverse the position. This required me to leave a lot of my capital idle at times, and use a lot of margin at other times.

The margin change really cost me, because I had to stop adding to and trading my positions in order to prevent a margin call (liquidation). So I have basically been out of business since the margin change. Some of my positions are finally flat, and I think I will be trading again within a few days.

Now, I will put on my positions at closer intervals and with a little more size because I won't be letting them run as long. I will close portions of each position before 3:50 to avoid margin problems. I have been paper trading this, and it might actually be more profitable in the long run. Time will tell I guess, but October was by far the worst month I have had - it would have been a decent month if I could have traded normally.
 
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