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Pairs Trading or Arbitrage
- Thread starter bsesen12
- Start date
riskless in arbitrage although depthless is maybe fun for lucrative, but not so avail in all the levels of your prop may seek.
come lick my pencil
Anytime I see Pair Trading I always wonder what their first step is. The first step is finding the pair, the next step is determining the corrleation.
What most people do not know is that pairs trading is only possible with nearly perfectly negatively correlated pairs. Positively correlated pairs still have upward drift, and every commentator I've ever seen on the subject including one this week on fast money did not accurately describe a pairs trade correctly.
What most people do not know is that pairs trading is only possible with nearly perfectly negatively correlated pairs. Positively correlated pairs still have upward drift, and every commentator I've ever seen on the subject including one this week on fast money did not accurately describe a pairs trade correctly.
We did a Pairs Trading basic presentation for ET'ers a while back. Here is the Powerpoint if you care to see some of what we do.
I worked with Darren Clifford on this little presentation.
Darren: http://www.stocktrading.com/trader10030.html
Darren's group has proven to be our single most successful group in 2008, with a couple of dozen members all making 6 figures. I'm very proud of this fine young man. He has traveled the globe, often with his family and friends, traded from a dozens of countries, climbed Mt. Kilimanjaro, along with many other feats.
I hope this link works for slides.
http://www.stocktrading.com/ETPairs.ppt
Anyway, we may do another presentation for ET at some point.
All the best,
Don
I worked with Darren Clifford on this little presentation.
Darren: http://www.stocktrading.com/trader10030.html
Darren's group has proven to be our single most successful group in 2008, with a couple of dozen members all making 6 figures. I'm very proud of this fine young man. He has traveled the globe, often with his family and friends, traded from a dozens of countries, climbed Mt. Kilimanjaro, along with many other feats.
I hope this link works for slides.
http://www.stocktrading.com/ETPairs.ppt
Anyway, we may do another presentation for ET at some point.
All the best,
Don