short dax at 9382
stop at 9382 (be)
Long Dax 9343
Where will the bounce take us I wonder?
I'm eying 9413 on dax
how do you (anyone who cares to answer) calculate the ratios for pair trades?
how do you (anyone who cares to answer) calculate the ratios for pair trades?
give an example of a trade
short ENEL.MI long ENI.MI
I think 12 touches on it in this thread.
http://www.trade2win.com/boards/indices/193598-market-correlation-variance.html#post2441412
If not, ask him to expand, I'm sure he will !
eg dow 17260 ftse 6210 , simply divide dow by ftse giving a ratio of 2.78 currently. So if long 1 dow could be paired with 2.8 ftse.
what are prices for each of those? guessing they on italian exchange
If you are spreadbetting then yes , but if you are trading CFDs then one should factor in the currency exchange rate . And if you are trading futures DMA , 1 Ftse futures contract = 1 ES contract .
enel 3.528 eni 13.29
Whos for $30 oil and 2008 all over again.
(Lets not forget the wasted $29 Trillion).
http://www.levyinstitute.org/pubs/wp_698.pdf