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Spread and Pair Trading

28 bytes added, 17:04, 27 April 2017
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==Exchange Traded Spreads==
In MC MultiCharts 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 such spread.
==Visual Spread on Chart==
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 be plotted on subchart 1. The symbol B should be plotted on subchart 2.* On the second chart the symbol B should be plotted on subchart 1. The symbol A should be plotted on subchart 2.* On both charts the strategies should be applied that has have similar but reversed logic should be applied to buy for the 1st chart and to sell for the 2nd one (orders can be placed only on data series 1).
<div style="background-color: #E5F6FF;">'''Example''': When one of the pair is bought or sold, your strategy needs to know exactly what’s going on with both symbols. If your pair is Google and Microsoft, you would enter GOOG as symbol one and MSFT as symbol two on first chart. Then you would add MSFT as data one and GOOG as data two on second chart. On first chart when a condition on data 1 is met the strategy buys and at the same time when this very condition is met on the second data series of the second chart that strategy sells and vice versa. This way each instrument in the pair is actively referencing the other instrument—and you achieve complete synchronization. </div>

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