pairs trading

[Don Bright]

Just a comment...we're all learning and adapting all the time .. for example, my brother is holding a 6-12 hour session with our family portfolio traders to add several new dimensions to our strategies.... the main PairCo people (Rob and Darren) are here, along with the family and a couple of solid friends/traders to make the next big move - adapting to the NMS and elimintation of the uptick rule change - of course I can't go into the dettails...

My point is that we all have to adapt and learn...and, regardless of what anyone might think, the Bright's lead by example - and, just to help the cause, we have meetings like this when needed.

I would hope that, regardles of where or how you trade, regardless of the instruments you trade, regardless of how much money you have/trade with, whatever...that you work with people who can bring a lot to the table, work hard, strategize, share....man, I can't say it loudly enough...it makes all the difference in the world.

Do we love trading for a living or what - do your best, help others - and most importantly "stay in the game" by watching your risk in times of major volatility changes.

We had one of the best overall days at BT today - and yet, we have a dozen people planning what we will be doing differently tomorrow.

(sorry for the soap box again, LOL)

Don

 

[Hooked2000]

Quote from Don Bright:



We had one of the best overall days at BT today - and yet, we have a dozen people planning what we will be doing differently tomorrow.

Don

Volatility tends to help pairs trading. no doubt about it.

 

[Don Bright]

Quote from Hooked2000:

Volatility tends to help pairs trading. no doubt about it.

We actually prefer "predictability" to "volatility" - but by trading the "noise" (as Rob at PairCo calls it) has been fun for the most part. Intraday dollar moves are giving the Pairs guys a good chance to lock in some "daytrading" profits.

Not all rosy, however, those that are sitting on their hands watching everything, holding positions too long, are having some problems. Overall the traders are doing pretty well...remember, this is a completely individual sport, we have to adapt.

Don

 

[scorpion]

DON, do you think this volatility is a new trend that has started? crazy the past few weeks... OR ... just a short blip that will pass? thanks..

 

[Don Bright]

Quote from scorpion:

DON, do you think this volatility is a new trend that has started? crazy the past few weeks... OR ... just a short blip that will pass? thanks..

My brother held a 6 hour meeting yesterday with the entire focus on "gearing up" our family portfolio traders and helping our Canadian groups adapting to a continued higher volatility. In our opinion the NMS changes,combined with the elimination of the uptick rule, will cause for continued movements.

Better to prepare and adapt early on for a significant change in market mechanics than to be caught un-prepared, thinking that things will "settle down."

We will be having a Firm wide discussion next week as well.

Don

 

[Hooked2000]

Quote from Don Bright:

We actually prefer "predictability" to "volatility" - but by trading the "noise" (as Rob at PairCo calls it) has been fun for the most part. Intraday dollar moves are giving the Pairs guys a good chance to lock in some "daytrading" profits.

Not all rosy, however, those that are sitting on their hands watching everything, holding positions too long, are having some problems. Overall the traders are doing pretty well...remember, this is a completely individual sport, we have to adapt.

Don

What is predictability? Could you explain more on that.

BTW with a zero volatility, pairs make no money at all, no matter what someone "predicts".

In my opinion vol = opportunity

 

[Don Bright]

Quote from Hooked2000:

What is predictability? Could you explain more on that.

BTW with a zero volatility, pairs make no money at all, no matter what someone "predicts".

In my opinion vol = opportunity

By predictability we just mean that when we see something day after day, or week after week, in a relationship between a stock and another stock (pair), a stock and the overall market (following the S&P for example), and maybe consistent relative strength...things like that.

You're right about the volatility, it does add to the intraday trading and profits...our alerts that were going off maybe once a day, are sometimes going off 5 or six times a day, signaling adds and closes to layers, etc.

Don

 

[trader88]

Quote from Don Bright:


We will be having a Firm wide discussion next week as well.

Don

Will this be done live in Vegas or thru Paltalk? Will Bright traders be notified of this event?
Thanks.

 

[scorpion]

DON, we share the same sentiment to what has taken place, hopefully it is a new trend, that will continue, that is offering more opportunities for traders to profit from.. thanks.

 

[Don Bright]

Quote from trader88:

Will this be done live in Vegas or thru Paltalk? Will Bright traders be notified of this event?
Thanks.

Yes, be sure to listen in to Paltalk, I'll know by Tuesday which day, after the close, we'll be doing it.

Don