Pair Trading Strategy Journal

[jonnysharp]

I haven't booked any losses, only wins, what I meant is my open trades are currently in the red.

 

[Midas]

Be careful not to let one bad trade take out all of your profits. Remember you can be right 80% of the time but that still leaves %20 losing trades. Don't let these trades take out all of the positive gains.

 

[jonnysharp]

Thanks Midas, my trade sizes are small to keep the damage from such an event to a minium.

Closed 2 trades today, both at a profit;

Sold MBT @ 64.35
Covered TII @ 12.73

Sold IR @ 35.95
Covered ITW @ 47.67

No new trades today.

Open trades: 10
Wins: 13
Losses: 0

Have a great weekend everyone.

 

[jonnysharp]

Interesting article from 1988 on Goldman Sachs halting Index Arbitrage in their own accounts. The perception at the time was that program trading was the cause of the '87 crash. http://query.nytimes.com/gst/fullpa...5A35751C0A96E948260&sec=&spon=&pagewanted=all

 

[gehko]

its days like today that i am glad i hedge

 

[yobo]

Quote from gehko:

its days like today that i am glad i hedge

Morning Gehko,

I think you mentioned you trade with Bright's Vancouver group. Just curious as to what the difference is between trading with them versus being direct with Bright?

Thanks for the insight.

 

[gehko]

Quote from yobo:

Morning Gehko,

I think you mentioned you trade with Bright's Vancouver group. Just curious as to what the difference is between trading with them versus being direct with Bright?

Thanks for the insight.

not me bro, maybe you were thinking of Midas.

 

[mschey]

Quote from jonnysharp:

Interesting article from 1988 on Goldman Sachs halting Index Arbitrage in their own accounts. The perception at the time was that program trading was the cause of the '87 crash. http://query.nytimes.com/gst/fullpa...5A35751C0A96E948260&sec=&spon=&pagewanted=all

Portfolio insurance was more likely the cause.

 

[Midas]

Quote from gehko:

not me bro, maybe you were thinking of Midas.

No, I do use Bright for stocks but I live in FL. From my understanding the Canadian offices are branches.

 

[jonnysharp]

Crazy day in the markets, really glad I haven't been trading the financials, AIG, FNM, FRE, LEH, MER, BAC, C have all made crazy moves lately, get caught on wrong side and ouch. Needless to say my open positions are experiencing high volatility & no exit or entry signals today. The whole financial system seems to be buckling at the knees. Interesting times.