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Relative Value Trading
- Thread starter etfarb
- Start date
Relative Value usually applies to instruments within the same asset class (bonds vs. similar bonds, for example). Stocks vs bonds is therefore not RV, but rather a spread trade.
Are you interested in relative value or spread trading?
Are you interested in relative value or spread trading?
Quote from EquityGuy4321:
Relative Value usually applies to instruments within the same asset class (bonds vs. similar bonds, for example). Stocks vs bonds is therefore not RV, but rather a spread trade.
Are you interested in relative value or spread trading?
I'm interested in both. I trade the Es/Nq so i'm trying to structure something that interacts with the bonds...
I have a system that trades once every 2 weeks when the signals align but i'm trying to make something that will help me trading day in day out.
Any suggestions?
Trading bonds against stocks on a "fundamental basis" is probably best done longer-term (think weeks or months) through some type of regression modeling. This wouldn't be rv trading, per se, but rather more econometric modeling. Short-term (days or less) I would look at purely statistical relationships (momentum or mean-reversion strategies).
There is a poster named Bone who seems to be in touch with spread trading (which is what you are trying to do), so I would look up his posts.
There is a poster named Bone who seems to be in touch with spread trading (which is what you are trying to do), so I would look up his posts.
Quote from EquityGuy4321:
Trading bonds against stocks on a "fundamental basis" is probably best done longer-term (think weeks or months) through some type of regression modeling. This wouldn't be rv trading, per se, but rather more econometric modeling. Short-term (days or less) I would look at purely statistical relationships (momentum or mean-reversion strategies).
There is a poster named Bone who seems to be in touch with spread trading (which is what you are trying to do), so I would look up his posts.
appreciate it!