BATS:FEU   SPDR INDEX SHARES FUNDS STOXX EUROPE 50 ETF
1676 views
2
1676 4
This is how I visualize pair trade on my other platform. It may look confusing , but it's actually very simple.

I use the Bollinger bands to measure standard deviation of a pair. When the ratio of the pair is at +/- 2.5 Std deviation( green lines I enter the trade. The correlation needs to be at least at 75 % + and co- integration at 70 % + .

I exit the trade when the ratio is above or below +/- 1 std deviation ( red line) .

See trade detail on chart.

Algo
This is a test!! discard it :)
Reply
Closing this pair with a profit. Selling FEU @ 33.44 , and covering XLB 38.66 . :)
Reply
Quick Note : We are technically LONG this spread. To be profitable , the spread needs to be above 0.85 when it crosses the - 1.0 standard deviation.
Reply
point of entry

FEU = 32.40 long

XLB = 38.41 short
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Get Help Ideas Published Followers Following Private Messages Chat Sign Out