2007 Jan 31 - Wed

Trading Site of the Day -- Information Arbitrage: Intellectually Speaking

Information Arbitrage takes in depth reviews of the hard-core wonders of Wall Street -- things like derivatives, economics, sell-side organizations, as well as taking on some of the main stream topics like the "Jobs Put Option" bit.

On November 26, 2006, he wrote an article called "Black Box Trading: Panacea or Promotion". He is saying I'm on a hopeless cause. Why should I succeed when big guys like Ray Kurzweil throw millions of dollars at developing Block Box Trading Systems.

I'm slowly acquiring a perspective on how markets behave. And they certainly aren't well behaved. The randomness is random, after a fashion. I'm impressed by how various simple strategies I've come up with can reach a zero result, before commissions. But there has to be an edge somewhere.

Hence, I'm proceeding along two avenues. One is continuing the development of an Automated Strategy, just to see what I can do and what I can learn. The other is to resuse some Darvas strategies I successfully used last year before getting too busy with other stuff.

This is the reason for posting the Darvas stuff. I know it was successful before, and I need to do a little paper trading to prove my techniques, before I jump in once again with real money.

By tomorrow, I'll be behind by two days in posting the various results. I'll get caught soon.