2. Leisurely look for trades; quickly exit them. The Ginzo Korekawa rule.
3. If the pair goes poorly, cut risk.
4. If the opposite trade suddenly appears to be the better trade, one can reverse.
5. Consider the options on the futures to see where “smart money” is staking out their short positions. One can also find “juice to sell.”
6. The future pairs and future calendar trades work very well. However, I’m told by professionals that these are trades for periods of low volatility. When volatility is high, we must “sell junk.”
7. Look for turning points, such as key pockets of resistance, and trend indicators. Key turning points present higher risk to pairs traders.
8. Ideally trades should be checked periodically, not every moment. Start by watching carefully and cautiously for any reaction; second, turn away from the trade and pursue other tasks for 30-45 minutes.
9. If one only monitors the trades a couple times of day, the risk and reward increase, but one loses the often profitable capacity to scalp.
10. Double dipping in the same trade is alright. But repeated returns to the well shows and/or gives rise to a nervous disposition. Aside from ghosts, the real danger is that the move one consciously or unconsciously finds may reverse in the time that has passed since the first trade in a given pair.