Pairs Trading
- Thread starter jcstylin
- Start date
Hard to tell for sure, but I think the automation has more than made up for any possible dillution, just from what I see.
Don
The above listed web site links to Amazon.
Do you have the correct link to the website listing the C# code?
It still cracks me up that those who really think that there is "code" or a "system" that will make them money won't believe that traders who actually trade, using some quant tools, and a lot of fundamental data, seem to make good money.
You can throw around all the "greeks" in the world, but can you throw around profits like (for example) my brother and so many pairs traders do?
These same people seem to point to the "gods" at "hedge funds" and say "wow" - and, yet, many of these successful funds are using nearly the same strategies that our guys are able to use (due to capital usage, etc.).
Trading is not for everyone, and specific strategies and techniques are not for everyone....but, I maintain that "profits" should be the main motivator, not one technique or another.
Don
You can throw around all the "greeks" in the world, but can you throw around profits like (for example) my brother and so many pairs traders do?
These same people seem to point to the "gods" at "hedge funds" and say "wow" - and, yet, many of these successful funds are using nearly the same strategies that our guys are able to use (due to capital usage, etc.).
Trading is not for everyone, and specific strategies and techniques are not for everyone....but, I maintain that "profits" should be the main motivator, not one technique or another.
Don
Are you kidding? We all know your brother's ultra-wealthy...and we know that big hedge funds control huge money...see the similarities?
The problem is that this strategy spells disaster when you take $10K and leverage it enough to have some diversified pairs. Shall I produce the PM's from a former Bright Trader who talks about Bob Bright taking over people's pair portfolios when they blow up? Nice gesture, but really just another revenue stream.
When your pockets are deep enough, you just wait for the pair to come back. Let your "traders" take the initial pain...
The fact that you're trying to minimize the issue w/ the "greeks" is telling. (and your constant usage of "etc.")
Mine is about 30K of very object oriented code that solves the general case, and I wrote it in a few days at night or on weekends in about three months. Although, that is not quite fair because I used libraries that I had built before for other autotrading projects of mine, so may be say six man months to a year...
Imo, the only person on this thread that has thought really hard and deep about this stuff is segv, although I think he is far too cynical on the [profitability of the] subject. Usually that means you are three ideas away from making it work. Those ideas could be monumental, or they may be a trivial realization...
I hint about it here http://www.synctrading.com/phpbb but I don't come out and say it.
nitro
Has it occurred to you that maybe this trader just couldn't cut it and probably isn't suited for trading? How was his/her performance trading other styles?
And believe it or not there are some that start with very small accounts and gradually build it up through consistency and hard work. Don's not gonna mention the failed pairs traders, and why should he?
It is not a flaw in the methodology, the flaw is in the trader.