timwest

Follow-Up of Winning Long DuPont/Short SPY Pairs Trade

DD/SPY  
DD/SPY  
As soon as DD             turn up relative to SPY             on the day highlighted it was the time to put on the trade. Even if you waited until it went over the 10-day average of the ratio, you would have gotten in with very good risk/reward. You would have had 1% drawdown on the first day's open, then as much as a 19% gain from there to today's high, or a 16% return to the last sale.

Had you just bought in on the day of publication, your maximum drawdown was 0.42% and your maximum upside was 19.79% for a worst/best ratio of over 40:1. Now that is a big trade.

You can see how easy it is to graph the ratio - just type in one symbol, then the "/" backslash and the next symbol, with no spaces. Ratios often tend to trend a bit better than outright positions, but there are no guarantees.

Wishing you many more returns.

Tim 2:59PM EST 10/6/2015
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too late to get in on pullback?
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Master at work, here. Superb.
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Excellent insights per usual. :okay:
+1 Reply
many thanks Tim
+1 Reply
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