Spread trading, Stat Arb with Stock Odds
- Thread starter Gambit
- Start date
they still pimping that old strat ?
i give you the new strat for free.
buy anything up 100% and sell it up 300%
rinse , repeat , lambo
this is better than anything anyone else here can give you
I do not find it helpful. You really must do your own research to get some value here.
I intend to do my own research. Thank you for your input.
Ok, that is good. I would also not consider taking ideas from them. That should be only some waste of time for the required backtesting computing time. Plain StatArb is the good thing in my opinion. You only need to be aware which stocks are really fundamentally related. Then you can expect some mean-reverting behavior (later) even when it does not work for some time (with the optimized setup).
Are you trading European stocks? Euro market is ignored by most of the trading community.
I am not so into stocks anymore (since a few years). Because the effort would be too much. If you do only very small size for intraday trading with StatArb then it is not a problem. But imagine you wanted to do some larger size you really must another execution system to collect and distribute those shares, you cannot simply enter 20000 or 200000 shares at once with minimal slippage. That was one reason I switched to Spot Forex because of the larger liquidity and I really do not need to care about order sizes/trade tickets. Actually I am also not aware of a broker where you can get decent intraday leverage for European stocks, say something in the region of 50:1 leverage for intraday only. And if you swing trade stocks you do not get good leverage and it takes much more time to build up. That is all not the case with FX.
That’s huge size. You’re right…baskets require huge leverage. Bright is supposed to offer Euro trading through IB. 20 to 1 leverage. But forex has way more built in leverage.
Are you providing liquidity in FX pairs or taking? Both?