So many times, I have folks that will ask me about when they should beta weight vs dollar weight their pairs trade. In order to best explain, we will use the pairs BP-MRO and BAC-RF for our example. Before deciding whether to beta weight or not, you first want to discern the approximate range of […]
This post should be the starting point for anyone new to pairs trading. It includes reference materials for setting up charts, entering & exiting trades, and following along with the ShadowTraderPro Pairs Trader advisory. Everyone should start with reading the ShadowTraderPro Pairs Trader User’s Guide. You can download the .pdf here: Pairs Trader User’s Guide […]
Greetings Pairs Traders I thought it might be interesting to take a look at pairs from a couple of different perspectives and styles. Our top chart is our standard pairs set-up with all of the pairs wicks exposed. Now, as pairs traders we know, that we don’t use the values of the wicks, but only […]
Greetings Pairs Traders A frequent question that I hear a lot is, “how do I determine what is hard to borrow (HTB) and easy to borrow (ETB) when I am trading pairs”? This is a great question, and the best way to determine the status of both stocks within a pair is to select Prodigio’s […]
