BarTune1
441 posts
msg #82415
- Ignore BarTune1 |
11/4/2009 10:00:30 AM
Well, my positions have crossed the 5 dma, I put stops in right now just incase there is a reversal.
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Kevin_in_GA
4,599 posts
msg #82417
- Ignore Kevin_in_GA |
11/4/2009 10:34:03 AM
Yup. Things are currently looking good for the longs.
I my paper trading of options, my limit order to sell 20 contracts for the Nov 38.00 call for TNA was hit (at 3.00). I bought in at 2.55.
Initial investment - $5100
sale proceeds - $6000
commissions - $25.50
net profit - $874.50
Profit - 17.15%
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BarTune1
441 posts
msg #82445
- Ignore BarTune1 |
11/4/2009 7:57:36 PM
Well Kevin, I am out of everything now .... profits all around although some were small.
Now I wait for special situations before accumulating long or short.
If you like other low risk short term trades I often trade long/short pairs. Stockcharts is pretty neat in this regard, it allows you to chart pairs by putting a : between the symbols (like "COP:BP" that I traded a couple weeks ago).
Reversion to the mean trading works pretty well with some of these. These trades are fairly low risk if you restrict your trades to large caps in particular .... I usually keep my eye on other combinations like GLD:GDX and OIL:OIH ..... you can put bollinger bands around these pairs in stockcharts too ..... the commodities always get relatively expensive or cheap compared to the commodity producers and always revert to the mean over time. This is another system, that if you had the discipline to play only the most significant pricing anomolies, you'd make money >90% of the time.
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tmanbone
124 posts
msg #82455
- Ignore tmanbone |
11/4/2009 10:30:22 PM
Bar Tune,
Please elaborate. Thanks
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BarTune1
441 posts
msg #82530
- Ignore BarTune1 |
11/5/2009 8:43:58 PM
Tmanbone,
Elaborate? Can you be more specific? I touched on a number of subjects.
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tmanbone
124 posts
msg #82536
- Ignore tmanbone |
11/6/2009 12:56:37 AM
If you like other low risk short term trades I often trade long/short pairs. Stockcharts is pretty neat in this regard, it allows you to chart pairs by putting a : between the symbols (like "COP:BP" that I traded a couple weeks ago).
Reversion to the mean trading works pretty well with some of these. These trades are fairly low risk if you restrict your trades to large caps in particular .... I usually keep my eye on other combinations like GLD:GDX and OIL:OIH ..... you can put bollinger bands around these pairs in stockcharts too ..... the commodities always get relatively expensive or cheap compared to the commodity producers and always revert to the mean over time. This is another system, that if you had the discipline to play only the most significant pricing anomolies, you'd make money >90% of the time.
_________________________________________________________________________________________________________
I was interested in learning more about this strategy. The commodity/commodity producer pairs. Thanks, appreciate your insite.
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MARY4MONEY
806 posts
msg #82539
- Ignore MARY4MONEY |
11/6/2009 4:25:36 AM
you need to use the rsi-2 on the vix-its very very accurate-same thing as using the qid
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trendscanner
265 posts
msg #82568
- Ignore trendscanner |
11/6/2009 10:07:57 AM
Closed out my TNA trade this AM at 40, for about 11% profit. MIght miss additional run-up today or next week but as choppy as this market has been, I decided to take my profits before the market snatched them away from me.
I like this VIX trading strategy, will look for more opportunities down the road and may try some etf options with this as well.
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tmanbone
124 posts
msg #82578
- Ignore tmanbone |
11/6/2009 10:52:10 AM
I'm all over the RSI 2 M4M, been studying it for a while. Thanks
Trendscanner, nice trade I did about the same on SSO, I like the strategy too. Thanks Bar Tune, Kevin.
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BarTune1
441 posts
msg #82611
- Ignore BarTune1
modified |
11/6/2009 8:19:23 PM
Tmanbone,
Sorry for the delay ... tied up working ... sure interferes with my trading. Anyways, regarding pairs trading and the GLD:GDX for example ... read this ... it says it better than I can ... and the theory applies to cointegrated pairs ....
http://www.fma.org/Texas/Papers/IntradayPairsTrading-ATestofRelativePricingEfficiencyofMarketsforGoldandMiningStocks.pdf
See also
http://epchan.blogspot.com/2006/11/gold-vs-gold-miners-another-arbitrage.html
The pairs trades I have entered lately have arisen from my buy or sell screens of overbought or oversold stocks. Thats how I got into the COP:BP trade .... I am currently long JCP and short M today for a pair .... my screens indicate M is overbought and JCP is oversold .... JCP:M in stockcharts effectively tracks the ratio of JCP shares to M shares that I am long/short,
You have to have a fair amount to invest. Again, I am only looking to pick up a few %. However, because the position is hedged the risk is minimized to an extent.
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