> I was first interested in pairs trading - so I wrote some code to do that,
> but due to my lack of java experience it performed terribly.  I may try
> again at some point.   (BTW, eugene took a stab at something similiar for
> arbitrage purposes, but didn't find any suitable trades once he started
> testing it).
>

I've never released JArbitrager, but different people keep asking
about it. I'm going to give a presentation about it to the local
traders group this month in Raleigh, NC.  Anyway, here it is:
http://code.google.com/p/jarbitrager/downloads/detail?name=JArbitrager-Alpha.zip

The folks familiar with JBT will recognize the structure of
JArbitrager. Some things needed to be changed to accommodate the
spirit of pair trading, but otherwise, it's very similar to JBT. As
Shaggs mentioned, I gave up on it pretty quickly, as it became evident
to me from forward testing that there is nothing to squeeze out of
pairs such as SPY-ES, DIA-YM, and ES-YM. But it's possible that I have
missed something, or perhaps the arbitrage should be tried on less
liquid pairs.

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