ASX Stock Pairs Trade Journal

[SilverRanger]

Can't expect to know them all by heart. But I saw FMG's announcement and thought "that's another hit to the sector and I wonder who's contract got canned".... then I saw the price action of NWH after open and made the connection.

Too slow. Would have got out on the open

What I'm thinking now is to construct some kind of mapping between companies...basically for each company I trade on, come up with a list of :

• Companies it owns or is owned by
• Companies it has a JV with
• Major customers/contractors

Hopefully that will help in coming up with the connections and take advantage of them...

 

[peter2]

Another relationship problem that hit the fan recently was BLY - IMD.

I agree that a little basic FA info might be valuable sometimes.

 

[skc]

Another relationship problem that hit the fan recently was BLY - IMD.

I agree that a little basic FA info might be valuable sometimes.

If one didn't hold over the reporting dates there was no substantial damage.

 

[fingl]

View attachment 47958
Performance by exit type
I've categorised all 41 trades by their exit type. Target met, early profit taken, time-based stop (usually holding >2 weeks), chart stop (where I had a mental price-based stop based on support/resistance), scratched (trades that shouldn't have taken) and event (e.g. the PTM profit guidance). Note again that most profits are in the first two columns. The rest of the categories are not about profit, but risk control. Get one event wrong and you will pay for it over the next 40 trades.

skc, your target met is referring to your discretionary target and not the system exit target?

 

[notting]

Hi Notting,
Are you backing up using SQL Server Management Studio. I do a backup nightly and restore to the same computer if I have a problem or restore to a laptop if I'm going away. I dont have a problem restoring it and only have to manually add pairs if I'm looking for new pairs.

Let me know if you need more info.

I have backed up successfully if data is kept on same HD as program and SQL. But that's no way to manage a PC unless its dedicated. Does not solve the BS signals and % from the mean discrepancies running identical set ups on different PCs.

PS Buy QBE 13.15 sell IAG 4.39 Looks like Santa!

 

[SilverRanger]

I have backed up successfully if data is kept on same HD as program and SQL. But that's no way to manage a PC unless its dedicated. Does not solve the BS signals and % from the mean discrepancies running identical set ups on different PCs.

PS Buy QBE 13.15 sell IAG 4.39 Looks like Santa!

The real santa for the last two weeks has got to be MCR/PAN, the catch is that your timing needed to be right to milk from both the 10% MCR fall last week and the 12% jump from PAN today, while stayed out of the bs before hand. How many managed that? Not many I think...

 

[skc]

The real santa for the last two weeks has got to be MCR/PAN, the catch is that your timing needed to be right to milk from both the 10% MCR fall last week and the 12% jump from PAN today, while stayed out of the bs before hand. How many managed that? Not many I think...

Or ARI/BSL yesterday, APN/FXJ today...

These all look good on hindsight but with large volatility expected, position size would have been smaller.

 

[notting]

Or ARI/BSL yesterday,

Been Christmas all year on that one!

and a very hairy Christmas at that!!!

Glad the the consortium did not make a pitch at the end of April!!
What a joke the offer is!
Should be treated as an act of WAR!

 

[SilverRanger]

New trade for today: Long FXJ@0.40, short SWM @1.30.
The historic low of 0.4 seems to be a good short term support for FXJ and god knows what happened to SWM today so I decided to pull the trigger. Need to monitor SWM closely as it might turn into another APN.

 

[skc]

New trade for today: Long FXJ@0.40, short SWM @1.30.
The historic low of 0.4 seems to be a good short term support for FXJ and god knows what happened to SWM today so I decided to pull the trigger. Need to monitor SWM closely as it might turn into another APN.

All media stocks have fallen so low they are all off my trade list unfortunately.

Rumour / gossip today that Stokes might take SWM private so that probably explains the recent surge.

Most likely ot little substance. Same's been said since FXJ was 80c. But who knows what Gina or Packer or Stokes are thinking...

 

[notting]

Yeah probably want to sell on that rumour.
He would not want to pay for it and he already has 60% so not too many reasons why he would want to privatise unless he figures he could repack and float again.
It's already 60% his and he'd lose the tax free status on fully franked dividends which he milks to the hilt.
More likely to do buy backs with other peoples money to increase his steak first if that were the case.
So short swm and long fxj makes sense to me at FXJ@0.40, SWM @1.30.

 

[McLovin]

Rumour / gossip today that Stokes might take SWM private so that probably explains the recent surge.

If that turns out to be the case then it's highly likely it was always the intention, IMO. I think I said at the time, never trust a billionaire to do the right thing by the small shareholder.

 

[white_goodman]

hey quick question, are you able to get some reduced margins for stock pairs trading similar to futures?

 

[skc]

hey quick question, are you able to get some reduced margins for stock pairs trading similar to futures?

Short answer is not that I am aware of.

With CFDs on bigger stocks, the margin required is pretty low. If you run into margin constraints you are probably trading too big for the account size.

 

[white_goodman]

Short answer is not that I am aware of.

With CFDs on bigger stocks, the margin required is pretty low. If you run into margin constraints you are probably trading too big for the account size.

i guess il stick to spreading futures, i tried pairs trading via my IB, but the capital requirements was too much compared to potential profit even with 2x leverage

i havent read much of the thread but are you primarily trading convergence? or divergence? or jsut trying to capture dividends 'risk free'

 

[skc]

i guess il stick to spreading futures, i tried pairs trading via my IB, but the capital requirements was too much compared to potential profit even with 2x leverage

i havent read much of the thread but are you primarily trading convergence? or divergence? or jsut trying to capture dividends 'risk free'

No IB's leverage is not fantastic for pairs trading and the short universe is too small. I used CFD as a result.

It's mostly about trading convergence.

 

[notting]

Short ASL 1.875 Long NWH 1.72 Both ex, Seat belts for this one.
More nervous about the short on ASL as it's a runner!
Long both may be better but NWH usually gets the job done after a lag.

 

[notting]

Short ASL 1.875 Long NWH 1.72 Both ex, Seat belts for this one.
More nervous about the short on ASL as it's a runner!
Long both may be better but NWH usually gets the job done after a lag.

Whoops ASL should read 2.87 Sorry.

 

[skc]

Short ASL 1.875 Long NWH 1.72 Both ex, Seat belts for this one.
More nervous about the short on ASL as it's a runner!
Long both may be better but NWH usually gets the job done after a lag.

NWH under a lot of pressure in the last 2 days. I traded this last Friday and picked up the dividend on Monday essentially for free.

The sub holder notice last Friday showed that UBS has ~15m shares owned/borrowed (so they can short)? Looking at the volume they are pretty much there already so a short term low might have been printed...

Normally I would have traded this as well, but just lacking a bit of focus this week so I will leave the fun stuff to you .

 

[SilverRanger]

NWH under a lot of pressure in the last 2 days. I traded this last Friday and picked up the dividend on Monday essentially for free.

The sub holder notice last Friday showed that UBS has ~15m shares owned/borrowed (so they can short)? Looking at the volume they are pretty much there already so a short term low might have been printed...

Normally I would have traded this as well, but just lacking a bit of focus this week so I will leave the fun stuff to you .

I'm in it too, short AAX and long NWH