Keyon Software's PT Professional Pairs Trading PlatformÂ is a streamlined and simple to use system that provides the active trader with optimal entry and exit points for pairs trades. (If you are not familiar with Pairs Trading, please click hereÂ for a basic overview). While some systems provide an open architecture thatÂ require that the trader interpret signals, PT Professional runs an intense daily back-end analysis of over 500 mid to large-cap stocks to determine which pairs are optimal to trade on a daily basis. The analysis is performed by sector, and the resulting pairs are displayed the to trader prior to market open every day.Â
An important part of pairs trading is the determination of when to enter and exit a trade. Part of PT Professional's analysis engine includes the ability to determine entry, winning exit and stop loss points on an intraday basis. These values are displayed in the platform in real-time and PT Professional has the ability to determine these points by sector for more granularity.Â
Pairs data is displayed throughout the trading day in real-time. PT Professional provides a separate mini-window for each pair that changes color depending on how divergent the pair has become. For example, by default yellow indicates the pair is starting to diverge and a potential trade is developing, and green indicates the pair has diverged to point where the system determines it is close to or ready to open a new trade. Once the trade is in an open state, the pair's mini-window color and border will change to highlight that the trade has been opened and there will be values that indicate the real-time status of the trade as it progresses.
Here is a sample screen-shot showing pairs from both theÂ Energy and Technology sector on a specific day:
In the above screen capture, each pair (for example, DNR vs. HP represent a pair of energy stocks) is encapsulated within its own window. The pair windows that are light blue, yellow and green are in various states of divergence. The white window with blue outline represents a pair that has an open trade position. The stretch chart to the right simply shows a graphical representation of each pair's status relative it's divergence and provides a clear visual of each pair's progress (for more detailed information including how to interpret the values in this chart, please refer to the PT Professional quick guide orÂ the KeyonÂ FAQs) .
Once the "Price:" and "Goal:" figures match, PT ProfessionalÂ will tellÂ the trader that it recommends opening a pair positionÂ at the prices that the two stocks currently are trading at. It does this in real time in two ways - by updating a table on the display and also by popping up a notification on the screen. Optionally, the trader can turn on these notifications via email or text message. Likewise, when currently in a trade, PT Professional provides an alertÂ when it believes the trader should exit that trade.
By providing a powerful analysis engine with a simple and easy-to-use application, PT Professional focuses on the most important aspect of trading - a system that assists and enables aÂ trader to consistently generate returns.Â
Keyon Securities' Hedge Trader Platform takes the best of breed stocks within each sector and trades them against an inverse security for hedge protection and consistent returns. Hedge Trader is currently under development and is targeted for release in the fall of 2015. For more information, please contact our team at or send us a note via our contact form.