ASX Stock Pairs Trade Journal

[Atari rose]

Just closed this trade yesterday as my largest loss ever!!!

Bad luck there mate, I didn't put anything on last week at all, The Market didn't help such a newbie as myself so I thought I would just sit back and watch. Good thing is I get payed in US dollars and scored myself a 12% payrise.

Anyway this week.

 

[VSntchr]

Not happy with my APA trade at the moment...it's left me hanging till next Monday after going into a halt pending CR and acquisition of gas lines from Gladstone

A busy day today and my account is pushing pretty hard...need some reversion soon to close a few of the older ones down!

 

[skc]

Not happy with my APA trade at the moment...it's left me hanging till next Monday after going into a halt pending CR and acquisition of gas lines from Gladstone

A busy day today and my account is pushing pretty hard...need some reversion soon to close a few of the older ones down!

Are you long or short there? It's a renounceable issue so you'd probably come out a wash if you are long. If you are short you'd need to buy some of those rights back. It really depends on whether it opens above or below the TERP.

 

[VSntchr]

Are you long or short there? It's a renounceable issue so you'd probably come out a wash if you are long. If you are short you'd need to buy some of those rights back. It really depends on whether it opens above or below the TERP.

Long. If the market keeps tanking this week then perhaps it will be a blessing in disguise as it misses the selling...

 

[notting]

Consider longing JBH vs short HVN.
HVN just went ex, have done a cap raising and are running on absolute BS.

 

[SilverRanger]

There were some rather interesting gaps happened in Friday's closing auction in REITs, specically, WFD, CHC and ABP up 0.58%, 0.84% and 0.67%, while BWP down 1.12% compared to just the minute before close. Didn't make any money on them as such but at least they helped improving my entries

 

[SilverRanger]

Long. If the market keeps tanking this week then perhaps it will be a blessing in disguise as it misses the selling...

APA's been chasing this since August and I've been avoiding it since then. Good luck there, you never know what's gonna happen to rights issues these days, people don't seem to care about TERP anymore

Consider longing JBH vs short HVN.
HVN just went ex, have done a cap raising and are running on absolute BS.

Just happened to short JBH today against SUL long, but obviously for very different reason and time frame, so good luck to both of us On another unrelated note, I recently visited Singapore and Malaysia, and guess what Aussie icons I found....Harvey Norman and ANZ! And Hardly Normal seemed pretty well respected in SE Asia, surprise, surprise...

 

[VSntchr]

There were some rather interesting gaps happened in Friday's closing auction in REITs, specically, WFD, CHC and ABP up 0.58%, 0.84% and 0.67%, while BWP down 1.12% compared to just the minute before close. Didn't make any money on them as such but at least they helped improving my entries

Closed my BWP short at 3:50pm! Grrrr! and I have both WFD and CHC short...guess I took WFD short a bit early and didn't think it would keep going so far on the AUD drop. Lesson learnt there....

APA's been chasing this since August and I've been avoiding it since then. Good luck there, you never know what's gonna happen to rights issues these days, people don't seem to care about TERP anymore

Poor awareness on my part, this one took me by surprise. Its a complicated situation to deal with as to know what to do with the other leg of the pair. I decided to keep it open and slot in another infrastructure stock for the time being.

Just happened to short JBH today against SUL long, but obviously for very different reason and time frame, so good luck to both of us On another unrelated note, I recently visited Singapore and Malaysia, and guess what Aussie icons I found....Harvey Norman and ANZ! And Hardly Normal seemed pretty well respected in SE Asia, surprise, surprise...

I saw SUL/JBH and was going to take it, but the SUL chart spooked me a bit and hence caused me to wait until next week to see how it looks.

 

[VSntchr]

Anyone have tech difficulties with PTF today? I think perhaps the problems may be isolated to me as they appear to be database issues rather than datafeed. Hope it's not time for another wipe!!


A number of my pairs have duplicate dates appearing, some with lots of trades, some with no trades...

 

[skc]

Anyone have tech difficulties with PTF today? I think perhaps the problems may be isolated to me as they appear to be database issues rather than datafeed. Hope it's not time for another wipe!!
View attachment 60757

A number of my pairs have duplicate dates appearing, some with lots of trades, some with no trades...

I did have problems today but it was just prices not coming through until some time in the afternoon.

Your issue appears every now and again, and usually after a day of not having PTF running (e.g. on a public holiday). A refresh of all the pairs (I usually do in blocks of say 30 pairs) should resolve it.

 

[VSntchr]

I did have problems today but it was just prices not coming through until some time in the afternoon.

Your issue appears every now and again, and usually after a day of not having PTF running (e.g. on a public holiday). A refresh of all the pairs (I usually do in blocks of say 30 pairs) should resolve it.

Indeed your correct. I started doing it last night cause I know how long it takes and usually freezes the program while its "working". But yeah, problem solved.

 

[VSntchr]

Just happened to short JBH today against SUL long.

I saw SUL/JBH and was going to take it, but the SUL chart spooked me a bit and hence caused me to wait until next week to see how it looks.

Well congrats Silver, big jump for SUL today should give you a nice profit on that one.
I was very close to jumping in Monday afternoon but for some reason I ignored it and just couldn't pull the trigger on this one.

 

[skc]

Well congrats Silver, big jump for SUL today should give you a nice profit on that one.
I was very close to jumping in Monday afternoon but for some reason I ignored it and just couldn't pull the trigger on this one.

2nd big spike on SUL. I traded the long and short directionally today.

There's something brewing... my guess is that it will come to bear in either the new year (after the xmas trading update) or the report.

Look at how BKN spiked a few times on various takeover talks... yet in the end the share price is still trading well below the first spike after the bid is revealed.

 

[SilverRanger]

Well congrats Silver, big jump for SUL today should give you a nice profit on that one.
I was very close to jumping in Monday afternoon but for some reason I ignored it and just couldn't pull the trigger on this one.

If I had them yesterday then it would have been decent, but it just turned barely green early today and now still in red, so still holding on. Two stocks just never seem to reverse for me this week, AOG and SCP

 

[VSntchr]

2nd big spike on SUL. I traded the long and short directionally today.

There's something brewing... my guess is that it will come to bear in either the new year (after the xmas trading update) or the report.

You appear to be getting alot more active with your directional game SKC, well done - I know you mentioned it was a goal of yours to improve and it appears you have.

I missed all trades involving SUL as I was too trigger shy.

If I had them yesterday then it would have been decent, but it just turned barely green early today and now still in red, so still holding on. Two stocks just never seem to reverse for me this week, AOG and SCP

I'm feeling you on SCP...I am only slightly down there..but holding max size so I am keen to see that one fall. I actually have 2 trades with SCP. One is paired with MGR and the other with FDC. FDC is the clearer fundamental pair, but MGR has historically traded at a premium to SCP (I speak solely in price terms here) so I am confident taking that trade with any ratio that is meaningfully <1.0.

I remember last December I had a few that would just not revert...so I am starting to get weary of placing new trades as the low liquidity period approaches...but I am finding the temptation too strong...still getting plenty of good signals coming through!
If only I didn't make a few stupid mistakes this month (like shorting WFD) I'd be well in the green...

 

[skc]

You appear to be getting alot more active with your directional game SKC, well done - I know you mentioned it was a goal of yours to improve and it appears you have.

I missed all trades involving SUL as I was too trigger shy.

I am closing down my pairs trading over Xmas / New Years so I only have 2 pairs left. It gives me much more focus to do intraday directional trading.

I want to increase my directional game because pairs trading is not very "holiday friendly"... I like to hold a large portfolio of pairs (say 12-16 pairs). Anytime I want to take 2 weeks off, it's really 4 weeks away from pairs trading. 1 week prior to going away, I need to start ramping down the pairs and stop opening up new ones. And it takes me about a week after the holiday to rebuild the pairs portfolio.

The large pairs portfolio makes day-to-day equity curve a lot smoother (as each pair is uncorrelated) and I need a smooth equity curve to confidently hold pairs that go against me, and to open new trades. As a result, my performance overall suffers during the ramp up/down periods as I do silly things unnecessarily. With shutdowns during the 2 reporting seasons and the Xmas periods, and when my kids grow up I'd need time off during the school holidays, there could be 4-5 shut down periods in the year. So it's prudent for me to have a back up skill to keep the P&L flowing.

In the last 3 days I've done as much volume in directional trades as I would on a busy pairs day, with similar results, with no overnight positions and no tail risks (and reward). So it's worth building upon.

I'm feeling you on SCP...I am only slightly down there..but holding max size so I am keen to see that one fall. I actually have 2 trades with SCP. One is paired with MGR and the other with FDC. FDC is the clearer fundamental pair, but MGR has historically traded at a premium to SCP (I speak solely in price terms here) so I am confident taking that trade with any ratio that is meaningfully <1.0.

One of my 2 pairs is also SCP short

 

[Bsim]

Hi Guys,

Can anyone tell me if there is something going on with either FXJ or SWM that I havent seen? Apart from the UBS upgrade to FXJ I cant find any reason they would be so far out of line.

I got into this spread a few days ago and am getting smoked on both sides. Debating whether to bail out or Average in.

Cheers

 

[VSntchr]

Hi Guys,

Can anyone tell me if there is something going on with either FXJ or SWM that I havent seen? Apart from the UBS upgrade to FXJ I cant find any reason they would be so far out of line.

I got into this spread a few days ago and am getting smoked on both sides. Debating whether to bail out or Average in.

Cheers

I think FXJ is selling a radio station to APN. Other than that I haven't heard much. I was in a trade with SWM but got out for a loss earlier in the week. It does look a bit oversold here..
I am assuming your long SWM and short FXJ?

 

[Bsim]

I think FXJ is selling a radio station to APN. Other than that I haven't heard much. I was in a trade with SWM but got out for a loss earlier in the week. It does look a bit oversold here..
I am assuming your long SWM and short FXJ?

Yeah that's right L SWM S FXJ

SWM really struggling to hold a bid. But I'll hold for a bit longer and see what happens

 

[skc]

Hi Guys,

Can anyone tell me if there is something going on with either FXJ or SWM that I havent seen? Apart from the UBS upgrade to FXJ I cant find any reason they would be so far out of line.

I got into this spread a few days ago and am getting smoked on both sides. Debating whether to bail out or Average in.

Cheers

SWM downgrade their guidance quietly during the AGM. I am surprised that the reaction was quite muted for a number of days... but that firmly set the stock in a downtrend. So I'd say a lot of the divergence you see between SWM/FXJ is attributed to that news.

FXJ is just ranging, although some potential radio transactions are on the cards as already mentioned.