pair trading: collaboration in finance
TRANSCRIPT
PAIR TRADING: COLLABORATION IN FINANCEEVAN LEYBOURN
Evan LeybournLean / Agile Business Leader and Author
Melbourne, Australia
@eleybourn
http://theagiledirector.com
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AN AGILE TECHNIQUE TO
IMPROVE THE QUALITY AND PRODUCTIVITY OF STOCK TRADING
THIS IS A SIMPLE IDEA
TWO ROLES:1. DRIVER – WHO TRADES2. NAVIGATOR – WHO ADVISES
SIMPLE RULES
ROLES SWITCH EVERY ½ - 1 HOUR
SIMPLE RULES
PAIRS SWITCH EVERY DAY
HARD TO SELL, BUT
MASSIVE INCREASE IN QUALITY FOR ~15% COST OVERHEAD
SOME ADVANTAGES
1. HIGHER QUALITY TRADES
SOME ADVANTAGES
2. SKILLS AND KNOWLEDGE TRANSFER
SOME ADVANTAGES
3. SHARED KNOWLEDGE OF INDUSTRY AND COMPANIES
SOME ADVANTAGES
4. JUSTIFIABLE TRADES
SOME ADVANTAGES
5. RESILIENCE TO INTERRUPTIONS
PITFALLS AND DISADVANTAGES
1. COSTS MORE IN THE SHORT TERM
PITFALLS AND DISADVANTAGES
2. A SOCIAL SKILL THAT TAKES TIME TO LEARN
PITFALLS AND DISADVANTAGES
3. REQUIRES BOTH TO BE ACTIVELY ENGAGED ALL THE TIME
PITFALLS AND DISADVANTAGES
4. BONUSES NEED TO BE SHARED ACROSS THE TEAM
UNSURE ABOUT THE VALUE OF PAIR TRADING
EXPERIMENT, MEASURE AND EVALUATE
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DIRECTING THE AGILE ORGANISATIONBY EVAN LEYBOURN
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