An Arbitrage Strategy for Trading Indices

Editor's note: This was originally published in two parts on RealMoney. It is being republished as one article as a bonus for TheStreet.com readers.

Several years ago, I sat down with James Altucher at a Barnes & Noble cafe and discussed some cluster arbitrage strategies I developed that would be suitable for large accounts or funds.

For a few years, I traded several of these cluster arbitrages when I had customer demand. Perhaps that demand will return to LakeView Asset Management as investors seek less risky, transparent and unleveraged arbitrage strategies.

Well, time has passed, and ETFs have become more prominent. My pattern-recognition skills, which I learned many years ago and discussed in "How to Build Your Own Trading Model in 8 Steps ," still keep my interest alive in developing these strategies. ...