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Pairtrading

Pair Trading - Mean Reversion on BCHUSDTPERP/LTCUSDTPERPPrice might be crossing over the fast MA (yellow) and revert towards the slow MA (purple), the mean. For this trade, you can do a 1.5-to-1 reward to risk setup - 9% target profit, 6% stop loss. Pair Trading (from Wiki): A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy.
Long
by kh_thetrader
Pair Trading - Quick Scalp on BCHUSDTPERP/LTCUSDTPERPSecond attempt for the price to cross the fast MA (yellow) and revert towards the slow MA (purple), the mean. For this trade, you can do a ~2.4% 1-to-1 reward to risk setup. Pair Trading (from Wiki): A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy.
by kh_thetrader
Pair trade: Long $TSLA, short $NIO$NIO is extremely over valued here, their competition in China is fierce, and $TSLA is leaps and bounds ahead of what they can achieve. Quarterly deliveries were like 1/10 of what $TSLA delivered in the last quarter that was announced...Sentiment is extreme and after complacency and euphoria we had a sharp down day at the top. There is a fund shorting it, and Ray Dalio bragging about his position in the stock recently. It's ripe for a short vs $TSLA, which is about to rally in the weekly timeframe. Valuation is wild compared to $TSLA, and competitive advantage goes to $TSLA here, considering all variables and the sales it has in China as well as their pricing for made in China cars. You should short the same dollar amount of $NIO shares as you long $TSLA shares to get the pair trade going. I'd aim for a retest of 21.33 in this ratio at least, or could go into new highs as well. A 5-15% position would be fine here. Risk is roughly 3.06 to make 12.16, so a 3.97:1 reward to risk ratio. Best of luck, Ivan Labrie.
NASDAQ:TSLALong
by IvanLabrie
20
my hedged trade on FacebookHi everyone, This is another trade taken today: Long Facebook vs Short JC DECAUX. Facebook has lost about 20% from its august top. Fundamentals are still strong (ROE, revenues, margin, cash flow), the management is strong as well. I choose to hedge it with JC DECAUX, traditional advertising industry, with weakening fundamentals (debt and cash flow are bad), Moody's outlook is negative, and the management is not that good (actually they are the heirs of the founder, compare with Facebook that is run by its founder...). This is implemented with barrier options maturing in 90 days. Comments are welcome!
NASDAQ:METALong
by fb_fabien
Recap 18.41 sunday 6 oct 2019Employing an ETF pairs strategy may be useful when there is a disconnect between assets that are usually highly correlated. Sector, country, and index ETFs also provide opportunities for the pairs trader, usually involving going long on a strong ETF and short on a weaker one. It’s important to exit the trades when the assets realign or the trends of strong and weak assets reverse. It would also be wise to set a loss limit on each trade, and realize that markets are dynamic; relationships that existed yesterday may not necessarily exist tomorrow. Consider our S&P 500 and Dow Jones index example. These indexes are highly correlated and both are tradable via ETFs: the S&P 500 SPDR (SPY A) and the Dow Jones Industrial SPDR (DIA A-). When the two separate, they generally reconnect, although that can take days or months.
OANDA:WHEATUSD
by DORMAN5
Divergence between ETH and BTC?Are you worried? ETHUSD Price action pros and cons Bull Case: Trading with in rising channel Holding above 200sma Holding above 50sma Consolidating between $155 and $188\ Lack of strong selling pressure Bear Case: Difficulty staying above the 20sma Lack of strong buying pressure Stoch and AO still have room to move on the downside Alt coins considerable weaker than Bitcoin Correlations: DATE BTC-LTC BTC-ETH ETH-LTC 1/16 ... 0.73 ... 0.26 ... 0.29 4/16 ... 0.94 ... -0.06 ... -0.06 7/16 ... 0.76 ... 0.06 ... -0.08 10/16 ... 0.67 ... 0.38 ... 0.22 1/17 .... 0.65 ... -0.01 ... -0.01 4/17 ... 0.20 ... 0.27 ... 0.1 7/17 ... 0.38 ... 0.19 ... 0.08 10/17 ... 0.64 ... 0.74 ... 0.65 1/18 ... 0.26 ... 0.13 ... 0.67 4/18 ... 0.77 ... 0.76 ... 0.74 7/18 ... 0.93 ... 0.92 ... 0.90 10/18 ... 0.83 ... 0.74 ... 0.87 1/19 ... 0.90 ... 0.88 ... 0.91 4/20 ... 0.86 ... 0.90 ... 0.82 Several articles have likened the recent lagging performance of altcoins to the situation they experience in Jan 2017. The articles have basically pointed out that traders will soon be selling there BTC to buy the cheaper altcoins, such as LTC and ETH. However, I would like to point out how the crypto environment has changed over the last couple of years. Before 1/17 there was often a negative correlation between BTC and the altcoins, but since 4/18 the correlation between the coins has been greater than 0.75. As a quick reminder: altcoins that approach 1 are closely correlated with Bitcoin, altcoins around 0 are not correlated with Bitcoin, and altcoins that approach -1 are inversely correlated with Bitcoin. This measurement is known as Spearman’s rank correlation coefficient. Thus, in this current highly correlated environment we as traders would be wise to keep our eyes on the leaders to predict future price action. Comment and Feedback Welcomed!
BITFINEX:ETHUSD
by SR618
5
Pair Trading Idea DUK/XELDUK and XEL have a 84,3% correlation over 60 market days. Applying some of the most popular indicators on the pair DUK/XEL shows an interesting pattern. While XEL has been clearly outperforming DUK since several weeks, a trend reversal seems to occur. DUK might catch up in the coming days and weeks. The daily and the weekly RSI (1st indicator at the top "Ultimate RSI Multi Timeframe"), the Wave Trend Oscillator (2nd one) and the ultimate MACD oscillator (3rd one from the top) reversed recently from their lower ranges. The Squeeze Momentum Indicator (at the bottom) shows a nice divergence, which is also observable on the RSI . The setup is worth being given a shot: Short XEL, Long DUK . The strategy is market-neutral and is profitable when DUK starts to outperform XEL. Follow me to get regular pair trading ideas!
NYSE:DUK
by Optionopedia
Pair Trading Idea JPM/PRUApplying some of the most popular indicators on the pair JPM/PRU shows an interesting pattern. While PRU NYSE:PRU has been clearly outperforming JPM JPM since several weeks, a trend reversal seems to occur. JPM might catch up in the coming days and weeks. The daily and the weekly RSI (1st indicator at the top "Ultimate RSI Multi Timeframe"), the Wave Trend Oscillator (2nd one) and the ultimate MACD oscillator (3rd one from the top) reversed recently from their lower ranges. The Squeeze Momentum Indicator (at the bottom) shows a nice divergence, which is also observable on the RSI. The price action confirmed the reversal in the last days. The setup is worth being given a shot: Short PRU, Long JPM. The strategy is market-neutral and is profitable when JPM starts to outperform PRU. Follow me to get regular pair trading ideas!
NYSE:JPM
by Optionopedia
Looking for levelsOur pair has good growth potential, but there are some aspects to consider. We expect the continuation of the ascending movement. Our technical indicators also indicate a purchase. In the medium term, we can expect the price to pass to the level of 1.2, but the next level that must be overcome is the 1.1850 level and only if the pair is fixed above this level, we can say that the upward movement will continue. We recommend you to take long positions and set TP closer to 1.1850
Long
by SuperForex