The pairs trade I did as an experiment (long ITB, short EFA) has
not been a barn burner but I have to say it has caused me less
anxiety and problems that my discretionary position trades -- most
of those were short trades that I stopped at a loss after the big
gap held (I don't have rp's courage). Currently the ITB long
is up 7.06% and the EFA short is down 1.46% for an average of a
2.8% gain. For a while of course the short side was in the lead but
the pair has been profitable from the start. Could change if the
trend changes but naturally I hope to close it out before that
changes too much.
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Title: Pairs trade update The pairs
RYL follow up
Posted by bkout3 on 2nd of Dec 2011 at 10:34 am
The pairs trade I did as an experiment (long ITB, short EFA) has not been a barn burner but I have to say it has caused me less anxiety and problems that my discretionary position trades -- most of those were short trades that I stopped at a loss after the big gap held (I don't have rp's courage). Currently the ITB long is up 7.06% and the EFA short is down 1.46% for an average of a 2.8% gain. For a while of course the short side was in the lead but the pair has been profitable from the start. Could change if the trend changes but naturally I hope to close it out before that changes too much.