Spread and Pair Trading
Exchange Traded Spreads
In MC one is able to trade on a spread only if it is exchange traded spread and it is provided by your data vendor as a single separate instrument that is added to QuoteManager database (see Adding Symbols to Database) and mapped correctly to the corresponding broker instrument in Symbol Mapping window. If there is no such instrument on data source end and at your broker, then it is not possible to trade exactly on spread.
Visual Spread on Chart
To see a spread histogram of 2 instruments, one needs to plot a chart window with 2 symbols as data series 1 and data series 2. In the list of our prebuilt studies there are 2 spread indicators that can be applied to such chart.
Pair Trading
One can only send orders to buy or sell one or another instrument of a pair in MultiCharts, but to reach this goal the following system should be developed:
- 2 separate chart windows should be plotted with both symbols of a pair on the charts.
- On the first chart the symbol A should plotted on subchart 1. The symbol B should be plotted on subchart 2.
- On the second chart the symbol B should plotted on subchart 1. The symbol A should be plotted on subchart 2.
- On both charts the strategies should be applied that has similar but reversed logic to buy for 1st chart and to sell 2nd one (orders can be placed only on data series 1).
There is also another, a more complex way to pair trade:
- 2 separate chart windows should be plotted. 1 symbol of a pair per chart.
- 2 separate signals should be applied to each of the charts.
- Each signal script should use Global Variables in its script to pass values between the charts.