Click here to Skip to main content
Click here to Skip to main content

Tagged as

Pairs-Trader

, 1 Aug 2013
Rate this:
Please Sign up or sign in to vote.
A helper for statistical arbitrage

Please note

This article is an entry in our AppInnovation Contest. Articles in this sub-section are not required to be full articles so care should be taken when voting.

Target Platform

This entry is for app creation targeting Tablets.

Category

The Pairs-Trader app will be listed under Finance related apps category.

Overview

Pairs trading has historically been a trading mechanism used by the likes of hedge funds or other larger investors as it requires lots of analysis and statistics. If you always wanted to do pairs trading but weren't sure, Pairs-Trader will give you a helping hand.

When trading, one should always pay attention to the fundamentals. Most investors look at fundamentals like liquidity, growth, growth ratios, cash, earnings to determine if a given stock is worth trading. Pairs trading is no different - one should never trade pairs without understanding the fundamentals behind current stock price.

Once we have more than one stock in a given sector, we statistically examine them to determine whether they can be pair-traded or not. This is where correlations come into play! The more closely a stock is correlated to another, the more reliable is the movement in the same direction!

Target Audience / Intended Use

This app targets traders at heart. Whether you do it for hobby or do it full time, information displayed by Pairs Trader whether it's company fundamentals or pairs correlational data, it will arm you with sufficient information regarding performance of a company's stock when compared with others in the same sector.

App Dev

Like most of my recent work, the app will be developed using XAML and C#. No decision has been made whether to use WPF or Silverlight however from a design perspective, the app will use Modern Design Philosophy when presenting data.

In particular, the app will:

  • fetch stock fundaments and present those
  • calculate correlations and display those to user
  • calculate spread, differential and ratio
  • chart the stocks to enable users to divergence or convergence trade the stocks

Points of Interest

  • Trading in general is risky and one should always execute money management when trading
  • Stop losses should be precise and there is no room for hope

License

This article, along with any associated source code and files, is licensed under The Code Project Open License (CPOL)

Share

About the Author

Hermit Dave
Software Developer (Senior) Self
United Kingdom United Kingdom
A father, a husband and geek. I am opinionated around Microsoft technology stack as I have worked on it for most of my professional life. I also organise @WinRTDev - Windows 8 developer group in London.
 
For the last 2 years, I have been doing hobbyist development for Windows Phone and Windows 8. In that time I have developed a few apps - using publisher name : Invoke IT Limited
Windows Phone: Cineworld, Alarm Clock Free, Slydr (each has 35K downloads and growing) plus another 20 odd apps.
Windows 8: Cineworld (20K), Nature Sounds Free and a few more
 
After 13 years of professional enterprise development, I now work in a fast growing Mobile Banking / Commerce company.
 
I am a mobile / tablet enthusiast and you will find me tweeting / blogging about those
Follow on   Twitter

Comments and Discussions

 
GeneralThanks for entering the Intel AIC 2013! PinstaffKevin Priddle15-Aug-13 10:32 
GeneralRe: Thanks for entering the Intel AIC 2013! PinprofessionalHermit Dave16-Aug-13 1:20 
GeneralRe: Thanks for entering the Intel AIC 2013! PinstaffKevin Priddle21-Aug-13 8:01 

General General    News News    Suggestion Suggestion    Question Question    Bug Bug    Answer Answer    Joke Joke    Rant Rant    Admin Admin   

Use Ctrl+Left/Right to switch messages, Ctrl+Up/Down to switch threads, Ctrl+Shift+Left/Right to switch pages.

| Advertise | Privacy | Mobile
Web04 | 2.8.140827.1 | Last Updated 1 Aug 2013
Article Copyright 2013 by Hermit Dave
Everything else Copyright © CodeProject, 1999-2014
Terms of Service
Layout: fixed | fluid