The ShadowTraderPro Pairs Trader is a daily report which spotlights one equity pair which trades in a definable range and whose stocks are positively correlated. The objective of the newsletter is to present one such pair daily that may be coming into play currently, giving self-directed traders the opportunity to put the pair on watch for possible entry. Additionally, Pairs Trader sends out specific trade recommendations on selected equity pairs. These trades are managed actively via real-time email alerts and are tracked in the Pairs Trader Portfolio.
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Pair of the Day
- Pair: DAL - AMR
- Sector: Airline Industry
- Spread: 3.54
- Current Distance from Mean: 0.16
- Correlation: 0.97
- Spread Range: 3.55 - 4.10
Delta Airlines & American Airlines are well known stocks in their industry and the pair has established recent consolidation that could offer both a long and a short entry.
We look forward to your questions, comments and suggestions and for anyone still needing the "Pairs Correlation Set Up" please email me at pairstrader@shadowtrader.net. "Tuesday & The Market Is Coming Our Way!"Wizard Lab
Below are the Wizard Lab (.wiz) files needed for all of the current Pending Trades in the Model Portfolio below. Right click on the links below and save to your local computer. You can then import the strategies into Wizard Lab on your Prodigio Platform. Detailed instructions are in our Pairs Trader User's Guide here.
STRATEGY - Pairs XLNX-LLTC (buy).wiz
STRATEGY - Pairs XLNX-LLTC (sell).wiz
STRATEGY - Pairs UDR-CLP (buy).wiz
STRATEGY - Pairs UDR-CLP (sell).wiz
STRATEGY - Pairs NEM-ABX (buy).wiz
STRATEGY - Pairs NEM-ABX (sell).wiz
Pairs Trader Portfolio
The matrix below shows all current ShadowTrader Pro Pairs Trader trades in the Portfolio. The Portfolio is divided into three sections: Pending Trades, Open Trades, and Closed Trades. A 'Pending Trade' is one for which the .wiz files have been provided above, and is actively deployed in Prodigio, waiting for its spread value to trigger an entry. An 'Open Trade' is one which has fired and is actively being managed by Prodigio. 'Closed Trades' are those whose target or stop has been hit. Anytime that a new trade is entered, or any changes to existing trades are made, this information is posted live, in real time, on MyTrade.
The Pair of the Day setup above should not be assumed to be actively managed or or tracked. Appearance of a pair in Pair of the Day does not guarantee that the pair will be in play in the Portfolio at any time. Please check Open Trades section below for newly deployed pairs strategies that are waiting for spread entry. Closed trades are moved out of the matrix on Monday evenings and posted in our performance page here.
To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, and use Prodigio to automate your pairs trading, read our Pairs Trader User's Guide
| PENDING TRADES - week of 08/15 - 08/19 | |||||||||||||
| pair | dir | size | date entered |
entry price |
date closed |
exit price |
target | stop | status | mark to market |
p&l points |
p&l capital |
capital commit |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| XLNX-LLTC | short | 169,186 | 8/10 | 3.74 | n/a | n/a | mean | 4.50 | pendg | n/a | n/a | n/a | $10,014 |
 | Let's keep this pair short for now and let Prodigio look for a short entry on this pair around the $3.74 level... .. | ||||||||||||
| UDR-CLP | long | 218,265 | 8/11 | 3.64 | n/a | n/a | mean | 2.75 | pendg | n/a | n/a | n/a | $9,988 |
| Looking for a long entry with Prodigio for this pair around the 3.64 area. .. | ||||||||||||
| NEM-ABX | long | 87,101 | 8/15 | 6.77 | n/a | n/a | mean | 5.50 | pendg | n/a | n/a | n/a | $10,003 |
| The pair is back with both stocks showing as (ETB) Easy-to-borrow. .. | ||||||||||||
| OPEN TRADES - week of 08/15 - 08/19 | |||||||||||||
| pair | dir | size | date entered |
entry price |
date closed |
exit price |
target | stop | status | mark to market |
p&l points |
p&l capital |
capital commit |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BHP-BBL | long | 62,77 | 8/05 | 15.30 | n/a | n/a | mean | 14.00 | open | 16.20 | 0.90 | $7 | $9,875 |
| The pair now has passed our target mean of $15.57 and since Prodigio was not functional on Monday, we have elected to stay in the trade for more profit growth as the pair continues to climb. We will be watching the pair for a higher and more profitable exit. | ||||||||||||
| ClOSED TRADES - week of 08/15 - 08/19 | |||||||||||||
| pair | dir | size | date entered |
entry price |
date closed |
exit price |
target | stop | status | mark to market |
p&l points |
p&l capital |
capital commit |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| none | $0 | ||||||||||||
| |||||||||||||
| TOTALS: | 139 | open shares (open capital committed doesn't include closed trades) | $9,875.00 | ||||||||||
Click here for year to date Model Portfolio Performance - 2011
Click here for Model Portfolio Performance - 2010
Click here for Model Portfolio Performance - 2009
All content © 2011 by ShadowTrader Technologies, LLC. All rights reserved.
Disclaimer and Waiver of Claims: Disclaimer and Waiver of Claims: The ShadowTraderPro Pairs Trader is a newsletter service and it is not intended as trading advice or recommendation. The risk of loss in the trading of any securities products can be substantial. The strategies mentioned here are active trading strategies, therefore you should carefully consider whether such trading is suitable for you in light of your personal investment objectives and financial resources. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Past performance of any trades mentioned never guarantees future results.
Securities and options involve risk and are not suitable for all investors. See the characteristics and risks of standardized options.