Spread between 2 equity stocks.
I should be able to change the equity stocks in the algorithm, this should be an input parameter.
Trade entry into the spread is defined according to the % change in individual stocks. For example if ‘Easy Jet’ moves 3% in comparison to ‘Ryan Air’ the algorithm will sell the stock that is up 3% in comparison to the other stock.
eg ‘Easy Jet’ and Ryan Air. Eazy jet could be up 1% and Ryan Air could be down 2% and the algorithm will sell Easy Jet and buy Ryan Air.
The stop will be defined by a % move in the spread. If easy jet moves 10% in comparison to Ryan Air then algorithm should stop out of the trade. The stop % size should also be an input parameter.
The number of shares in each equity should also be an input parameter. For example Ryan Air could be trading 2 shares to every 1 Easy jet share. So every time a position is put on the spread, Easy Jet has 2 shares and Ryan Air has 1 share
A chart should be made as well which shows the spread, historically and daily movements
This chart should be able to be adjusted according to timeframe (daily, monthly, minute).
The chart should indicate where a trade entry would have been inserted into the market and when a position would have been stopped out.
The multiplier on the graph should be a different input parameter to the input on lot size (number of shares to buy)
There should also be a summary on the chart showing what the PnL would have been over a time period given the input parameters.
The automated robot to trade the spread should be able to turn off and on, so I can run it as a grey box system just showing me indictors if I want.
profit taking, this should be based on % movement of the stocks as well and should be adjustable.
So in the example I gave, if Easy Jet and Ryan Air have 0% difference in movement (they could both be up 4% or down 2%) the algorithm will take profit.
I
also want the algorithm to send me a text or email if a position has been put on, showing the entry price and the % change in each stock
Happy to talk numbers on how much it will cost.
Thanks,
Ravi