yes ive signed up for pairtrade alerts, the seperate service from the software, they do monitor the pairs and signals from what I gather, but they also provide some pretty insightful analysis and commentary on the market aswell, ive actually been talking with Jared and they have a managed account service which Im going to signup with too, where they have POA over my a/c and trade the signals for me, should be interesting to see how it goes and compares to my own trading, will keep you informed.
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Pair Trading Strategy Journal
- Thread starter jonnysharp
- Start date
yes ive signed up for pairtrade alerts, the seperate service from the software, they do monitor the pairs and signals from what I gather, but they also provide some pretty insightful analysis and commentary on the market aswell, ive actually been talking with Jared and they have a managed account service which Im going to signup with too, where they have POA over my a/c and trade the signals for me, should be interesting to see how it goes and compares to my own trading, will keep you informed.
Quote from jonnysharp:
yes ive signed up for pairtrade alerts, the seperate service from the software, they do monitor the pairs and signals from what I gather, but they also provide some pretty insightful analysis and commentary on the market aswell, ive actually been talking with Jared and they have a managed account service which Im going to signup with too, where they have POA over my a/c and trade the signals for me, should be interesting to see how it goes and compares to my own trading, will keep you informed.
what's the url for this service? i can't find it, doesn't show up in google
thx
Quote from Jets001:
what's the url for this service? i can't find it, doesn't show up in google
thx
www.pairtradealerts.com
Quote from jonnysharp:
I don't normally trade ETFs or futures as stock pairs produce better profits, however this pair is currently 1.26 standard deviations below its mean, in other words RUT is moderately overvalued compared to the SPX.
Thanks.......
I only trade the indices.......reason is that volatility in individual stocks due to stock specific reasons.
I have recently started looking into etfs and stocks that are are major component of the etf. the one i have a trade on at the moment is OIH/SLB
What do u think
Thanks again
Quote from jonnysharp:
I don't normally trade ETFs or futures as stock pairs produce better profits, however this pair is currently 1.26 standard deviations below its mean, in other words RUT is moderately overvalued compared to the SPX.
The data u used for the SD how far back was it.........any normalization?
Thanks again
I like it beause often there are some overnight reversal gaps.Quote from froluis:
Many seem to put their trade just before close. Why? what is the advantage of doing that?
I think some do it because the PTF backtest feature is based on close prices so to follow the logic they trade on the close.
But I also trade at different time of the day. If you could scan in the first 5 minutes (I dont) I think you could get some good entries if you can pull the trigger without too much analysis.
No thoughts. I dont really care who's over and who's under. (lol). Minus the numerical approximations, I think it should be very close. One thing I do is that I have a filter where I dont trade ratios over 5 or lower than 0.2 so it cancels out the possibility of numerical imprecisions.Quote from ezbentley:
It seems like PTF bases its calculations heavily on the "ratio" of two equities. However, isn't there a problem with the arbitrary choice of which stock is the numerator and which is the denominator?
I agree it's a good idea to keep things simple and I don't intend to get too overly mathematical. But the ratio ABC/XYZ will obviously behave differently from the ratio XYZ/ABC. Numerically, it will also affect other calculations based on the ratio, such as PlusMinus, PercentFromMean, etc. The difference may not be significant and the signals may still get triggered around the same time so in the end it may or may not matter.
Does anyone here have any thought on this?
If I get this right, thoses are index. So you would want to backtest or analyse with tradable assets like SPY:IWM. Understand the fundamentals. One is large cap, the other small cap. So there can be a drift from time to time because of fondamental changes in the supply/demand for those sectors. A real deviation can occur. So you need an extensive deviation from the mean and watch out for trends.Quote from xty:
Pls can u advice on the this pair SPX/RUT
thanks
Also, index are MUCH more efficient than stock pairs so you may not find very good tradable opportunities. Over time I really think this one thing applies almost to every strategy, there is no free lunch, more risk, more reward. If your running away from the risk of stocks you may get less reward in the safe world of index. Just my opinion.