Recent content by Lado

UTB: Does your statement implicate that you are betting the correlation trend will reverse whereas if you select a pair with rising correlation you are betting that the trend will continue? Maybe I am placing too much emphasis on correlation. I am trying to learn what makes a good pair but...

From what I have read on a similar thread at elitetrader.com, the experienced traders say that correlation has to be trending upward for a pair to be worthy of consideration. For this most recent pair, correlation has peaked and is heading downward. May be others get it but I don't. Lado

S77: I am surprised with your latest pair. The correlation graph on PTF shows that correlation has peaked and is now declining. Your comments please.

S77: When backtesting pairs in PTF to find suitable pairs to follow, is there an unwritten rule regarding the minimum correlation in the past 365 days that is acceptable in order to reduce the risk of a pair diverging? For example, if a pair has had a correlation greater than 90% for the past...

Stocks and ETF's. I haven't tried inputting index symbols. At the end of the day you would be pairing ETF's anyway wouldn't you? I have only been using the program for two weeks so I am no expert. However, I have read about the other software approaches available but none appealed to me...

The default refresh for PairTrade Finder is set at 5 minutes by default. You have to keep the program running while the markets are open so that it can refresh the prices. You can adjust the time between automatic price refreshes. In the Preferences, you can set the program to produce a sound...

How often should one look for new pairs? For example, I have many pairs set up in PairTrade Finder now. In six months time should I backtest again?

Another thing that I have read is that we should select pairs that have similar betas. The difference between the betas should be less than 0.2. The difference between the betas of GLNG and ESEA is 0.57 according to MSN Money's site. The difference between the betas of WLL and HP is 0.56 but...

Is there an optimal look-back period for finding pairs? I have read that it is a good idea to test pairs over multiple time frames but I don't know if that matters.

Thanks for the journal S77. I just purchased PTF and have entered my first pairs trade. I like the pairs you have found. Lado