Pairs Trading UK & US Stocks Journal

Guys, I'm going have to call an end to my posting on this journal, was fun to share my method with others and I made pretty good profits on the trades posted here. But i'm far too busy launching a new un-related business venture with my partner to continue posting here, Ive also stopped trading myself and outsourced my pair trading to the guys at Pairtrade Alerts where they trade their signals for me in a managed account, they actually do a far better job than I do, plus I don't have to do anything, so it's worked out great so far. If you guys want to keep posting, please do, il be sure to check in every now and then to read your comments, thanks for all your input and I wish you all the best in trading. CIAO

Honestly - you arouse interest in this software and then dissappear ?

I have several questions for you :

1) Correlation is NOT cointegration - and cointegration is what pair trades depends on. A stock pair can be correlated - ie their prices move close together, but not cointegrated, ie they mean revert etc. Then you do the dickey fuller test to get a hedge ratio etc. The ideal look back period is > 2yrs - NOT 100 days as you say.

2) You say that you are an ex bank trader - and you dont know this basic fact ? I also noticed when Mr Gecko asked you about bootstrapping you didn`t seem to have a clue.

I might be completely wrong - but it seems to me that an ex bank trader would at least know about boot strapping and monte carlo etc.....if you are a vendor then just say so.

Thanks
Combo

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Hi, just wondering - anyone would be interested in puttting some life to this subject? I am starting to use PairTradeFinder for trading US stock pairs, have been backtesting for some months now and have almost 20 pairs in my paper portfolio. Any other soul around here would be interested in sharing ideas in this field?
Thanks
Martin