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BarTune1
403 posts
msg #82415
Ignore BarTune1
11/4/2009 10:00:30 AM

Well, my positions have crossed the 5 dma, I put stops in right now just incase there is a reversal.

Kevin_in_GA
4,538 posts
msg #82417
Ignore Kevin_in_GA
11/4/2009 10:34:03 AM

Yup. Things are currently looking good for the longs.

I my paper trading of options, my limit order to sell 20 contracts for the Nov 38.00 call for TNA was hit (at 3.00). I bought in at 2.55.

Initial investment - $5100
sale proceeds - $6000
commissions - $25.50
net profit - $874.50

Profit - 17.15%

BarTune1
403 posts
msg #82445
Ignore BarTune1
11/4/2009 7:57:36 PM

Well Kevin, I am out of everything now .... profits all around although some were small.

Now I wait for special situations before accumulating long or short.

If you like other low risk short term trades I often trade long/short pairs. Stockcharts is pretty neat in this regard, it allows you to chart pairs by putting a : between the symbols (like "COP:BP" that I traded a couple weeks ago).

Reversion to the mean trading works pretty well with some of these. These trades are fairly low risk if you restrict your trades to large caps in particular .... I usually keep my eye on other combinations like GLD:GDX and OIL:OIH ..... you can put bollinger bands around these pairs in stockcharts too ..... the commodities always get relatively expensive or cheap compared to the commodity producers and always revert to the mean over time. This is another system, that if you had the discipline to play only the most significant pricing anomolies, you'd make money >90% of the time.



tmanbone
124 posts
msg #82455
Ignore tmanbone
11/4/2009 10:30:22 PM

Bar Tune,

Please elaborate. Thanks

BarTune1
403 posts
msg #82530
Ignore BarTune1
11/5/2009 8:43:58 PM

Tmanbone,

Elaborate? Can you be more specific? I touched on a number of subjects.



tmanbone
124 posts
msg #82536
Ignore tmanbone
11/6/2009 12:56:37 AM

If you like other low risk short term trades I often trade long/short pairs. Stockcharts is pretty neat in this regard, it allows you to chart pairs by putting a : between the symbols (like "COP:BP" that I traded a couple weeks ago).

Reversion to the mean trading works pretty well with some of these. These trades are fairly low risk if you restrict your trades to large caps in particular .... I usually keep my eye on other combinations like GLD:GDX and OIL:OIH ..... you can put bollinger bands around these pairs in stockcharts too ..... the commodities always get relatively expensive or cheap compared to the commodity producers and always revert to the mean over time. This is another system, that if you had the discipline to play only the most significant pricing anomolies, you'd make money >90% of the time.
_________________________________________________________________________________________________________
I was interested in learning more about this strategy. The commodity/commodity producer pairs. Thanks, appreciate your insite.


MARY4MONEY
806 posts
msg #82539
Ignore MARY4MONEY
11/6/2009 4:25:36 AM

you need to use the rsi-2 on the vix-its very very accurate-same thing as using the qid

trendscanner
265 posts
msg #82568
Ignore trendscanner
11/6/2009 10:07:57 AM

Closed out my TNA trade this AM at 40, for about 11% profit. MIght miss additional run-up today or next week but as choppy as this market has been, I decided to take my profits before the market snatched them away from me.

I like this VIX trading strategy, will look for more opportunities down the road and may try some etf options with this as well.

tmanbone
124 posts
msg #82578
Ignore tmanbone
11/6/2009 10:52:10 AM

I'm all over the RSI 2 M4M, been studying it for a while. Thanks
Trendscanner, nice trade I did about the same on SSO, I like the strategy too. Thanks Bar Tune, Kevin.

BarTune1
403 posts
msg #82611
Ignore BarTune1
modified
11/6/2009 8:19:23 PM

Tmanbone,

Sorry for the delay ... tied up working ... sure interferes with my trading. Anyways, regarding pairs trading and the GLD:GDX for example ... read this ... it says it better than I can ... and the theory applies to cointegrated pairs ....

http://www.fma.org/Texas/Papers/IntradayPairsTrading-ATestofRelativePricingEfficiencyofMarketsforGoldandMiningStocks.pdf

See also

http://epchan.blogspot.com/2006/11/gold-vs-gold-miners-another-arbitrage.html

The pairs trades I have entered lately have arisen from my buy or sell screens of overbought or oversold stocks. Thats how I got into the COP:BP trade .... I am currently long JCP and short M today for a pair .... my screens indicate M is overbought and JCP is oversold .... JCP:M in stockcharts effectively tracks the ratio of JCP shares to M shares that I am long/short,

You have to have a fair amount to invest. Again, I am only looking to pick up a few %. However, because the position is hedged the risk is minimized to an extent.

StockFetcher Forums · General Discussion · Volatility Analysis - VIX spikes and SPX follow through 1-3 days later<< 1 ... 2 3 4 5 6 ... 9 >>Post Follow-up

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