Author Topic: Intraday Pairs Trading?  (Read 126 times)

Vale

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Intraday Pairs Trading?
« on: October 19, 2022, 02:16:47 pm »
How do you backtest and trade intraday the pairs? My question is related to this question inside the FAQs

]Is it better to trade intraday (during the whole day) or just at the end of the day (EOD)?
You can decide if you will handle entry/exit signals during the whole trading day (intraday trading) or if you restrict trading session to some short trading interval to imitate EOD (end-of-day) trading. There are advantages / disadvantages to both approaches.

Intraday Trading

generates more signals = more trades = more commissions paid
worse average profit per trade
usually smoother equity
real mean-reversion strategy with capped profits
EOD Trading

less trades = less capital spent on commissions
better average profit per trade
equity not that smooth
sometimes it makes additional profit caused by not exiting at exit threshold but later
real trading results are much closer to EOD backtests
There are also hybrid setups possible (for instance, entering positions EOD but closing intraday or vice versa).[/i][/i][/b]

admin

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Re: Intraday Pairs Trading?
« Reply #1 on: October 20, 2022, 01:17:38 pm »
Hi,

we don't provide backtester for intraday trading. This would require to use expensive tick data and advanced backtester, which is out of the scope of this product.

You can trade intraday using PTL Trader as mentioned in the FAQ. But no backtest is possible - you have to use paper trading to evaluate the performance.

Vale

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Re: Intraday Pairs Trading?
« Reply #2 on: October 20, 2022, 05:18:23 pm »
Thank you for the replay but I do not understand how to use it intraday. Can you give an example? I read again the FAQ and this is not clear to me.

Vale

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Re: Intraday Pairs Trading?
« Reply #3 on: October 21, 2022, 09:01:06 am »
If you don't restrict trading hours for the particular pair (you leave it for example from 9:30 to 15:50 which matches the full trading hours) it will trade within the day in a sense that it can enter and exit position multiple times a day (whenever entry / exit is signaled by the rules).

Vale

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Re: Intraday Pairs Trading?
« Reply #4 on: October 21, 2022, 10:55:00 pm »
Thank you.