This entry is for app creation targeting Tablets.
The Pairs-Trader app will be listed under Finance related apps category.
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.
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
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