Pair Trading Strategy Journal

Quote from LazyLightnin:

Hi Ivan,

I'd be interested in what you find. Looking back through charts RS divergence does seem to work quite well. Too bad it wasn't an automated function to detect it. Hopefully as time goes on they get more buyers of the program it will become more robust.

Someone else posted here that stochastic divergence was yielding good results when used with signals. It's probably showing the same general thing.

Lazy
More...

SO, in your opinion, a divergence between RSI or stochastic, and pair ratio, should be a trigger to a good pair-trade?
 
Quote from tatankas:

SO, in your opinion, a divergence between RSI or stochastic, and pair ratio, should be a trigger to a good pair-trade?
More...

Somebody else on this thread mentioned the stochastic and said that was their observation. I was just repeating it. The people who produce the program and others look for RSI divergence.

What I did when I found this thread was start right at the beginning and read through it. When I found something I considered insightful and worth remembering I copied it into a Word file. I came up with a list of a few things that way that I could refer back to without searching. Other than a couple of people letting their egos get in the way the thread is worth a read from start to finish, and this is how I came to a lot of these points.
 
Quote from LazyLightnin:

Somebody else on this thread mentioned the stochastic and said that was their observation. I was just repeating it. The people who produce the program and others look for RSI divergence.

What I did when I found this thread was start right at the beginning and read through it. When I found something I considered insightful and worth remembering I copied it into a Word file. I came up with a list of a few things that way that I could refer back to without searching. Other than a couple of people letting their egos get in the way the thread is worth a read from start to finish, and this is how I came to a lot of these points.
More...

I have done the same thing.
There is a similar thread on pair-trading, right now i don't have the url, but can give to you, later on
 
Quote from chiefraven:

anyone know how to filter for corelations?
More...
? On PairTradeFinder?

Please take a look on the tutorial video.
It's on pairtradefinder website.
 
hey guys, in the pictures posted here.... i understand the ratio, and the rsi charts... however, how does pairtrade finder filters for corelations?

can anyone tell me what moving average it uses or something?

=====================

Also, i was wondering if someone could explain how they use the charts i see in these pictures on pairtrade finder...

the rsi chart, the corelation chart... etc etc

for example, one thing that puzzles me is the moving averages... like in some pictures you will have it set to 120 days, some for 150days, some for 55 days, 44 days.....

Another question is that when isee you enter a trade, the corelation chart will sometimes shows it topping at 90%.... but if we're trying to capture the profit when 2 stocks go back into equilibrium, dont we want to enter when corelation is at its lowest.... ?

so in a way.... do we need to use a 356 day moving average to find the stocks that are corelated, and then use a faster moving average to help with entry?

i'm a bit confused on this part.

so what exactly are the rules for corelations, how do you use it for filter, and for entry.... and how do you use rsi for filter, and entry?
 
hey guys please read through the entire thread before asking questions, ive answered the same questions several times now, I want to keep the journal clean instead of repetitive information, my entire method is explained in detail throughout the journal, what I do isn't really complicated at all, I can't emphasis enough how important it is to keep it simple, less is more. Focus more on keeping your emotions in check rather than constantly trying to tweak or develop a better method, just take the same trades day in day out.
 
You must log in or register to reply here.
Back
Top