good pair trade
I like a pair trade long x and short rock with the same dollar amount on both sides. A good entry would be
2.1 shares of x for every share of rock if you can catch the market when the prices are lined up that way.
just divide the price of rock by the price of x, and if you get anything close to 2.1, enter at the market.
as an example, you would short 100 shares of rock and buy 210 shares of x
2.1 shares of x for every share of rock if you can catch the market when the prices are lined up that way.
just divide the price of rock by the price of x, and if you get anything close to 2.1, enter at the market.
as an example, you would short 100 shares of rock and buy 210 shares of x
Note
so as of the close on 9/26. this trade was positive $366. today 9/27 it's going in the other direction. I decided to take profit at +$200. if both stocks pull back to the 10sma, I may reenter, or just look for a better situation
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.