Friday 9 November 2012

I've been spending a lot of time recently on some research relating to the financial markets, it's based on the principle that people are hardwired to look at things in a certain way, and on that basis will miss things that they otherwise might have picked up on.  For example, polar opposites, on/off, black/white, up/down etc. The world is not categorised in this way, only we make it so.  And in doing this I believe we become polarised to the polarised perspective, and therefore we miss things we otherwise might have picked up on.  Actually I prefer not to post too much detail as I've had the rather unfortunate experience of coming up with ideas only to have someone else take them, and gain credit for them.

I managed to quantify an interesting relationship in the markets, it must have taken me several weeks to do this now, since it involved essentially creating a new way of doing something, that certainly isn't in the public domain.  In some ways I view financial markets very much like the planet earth.  Most of the planet has been explored but certainly not all of it, and it is this as yet unexplored aspect that I am interested in.  I'll never forget the day I was reading some leaked "analysis" from Goldman Sachs and I was thinking as I read it, "Is this it! Is this the best they can come up with, surely someone can't be getting paid $70K/$100K pa for this!".  It just seemed so backward to me, what they were doing.  Coming back to my recent research, earlier this evening I've shown that it's possible to gain 1.44% over just under 4 weeks by exploiting a relationship between equity markets, that is perhaps little, or not understood at all.  I'm slightly different to most people, I will just try something, without having an opinion on whether it will work or not, with the bonus being that if it doesn't work, well I don't really care that much, at least I know what the situation is, but then if it does work then perhaps it's something that can be exploited.  Or perhaps not. There's a lot to be said for just trying.  I have this new idea, that I've tried to at least give a very general view of, that I may be able to exploit in the future.  Then I have a new trading strategy that I'm testing too, that hopefully will form the basis of my new general approach to the markets.  It's Friday night, it's quarter to 11, and here I am again, thinking about the markets.  

Sometimes I think I should be working for a hedge fund or something like that... 

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