What Will China DO ? – Contact Angel Alexa Ax
SIMPLE SIMON SAYS DO THIS .
Its the last day of 2109 . Tomorrow 2020 comes .
The China Fund came calling even though the fund managers are actually on holiday.
What will China do ?
Should they buy back the Tencent Stock (0700.HK) they sold massively in October to punish the stock for whatever chaos was reigning in HK . Will Tencent at 400 prove to be a selling opportunity ?
Then The American Fund came calling should they sell or Go Short the FXI at 45 ? Or Take Short Positions in TAO and CHIX China Funds or Buy YANG and YXI China Inverse ETF Funds ?
Wall Street Movie Protagonist aka Michael Douglas was right . Money Never Sleeps , Never Rest . Even during holidays, Money wants to Work . Sigh.
Then another several calls from A I C and V . A was an early investor in Rentech , Jim Simons , decades back and want to know what Bitcoin would do . Same question from I C and V , All HFT firms that have alot shorter time frames. They want to know what will Bitcoin do 8 days from now , 8 hours from now , especially 8 hours from now as perpetual contracts expire every 8 hours in bitmex.com and bybit.com. Hundreds of millions at stake and several million customers want to know and will migrate to another crypto platform if the liquidity and the maker fees are higher and the taker fees are lower . Its exciting to be a financial player . So much innovation takes place on crypto platforms that only mathematicians , scientists and software artists can only dream about .
Indeed , Our team of 12 are delighted with Crypto High Octane Growth and Speed of Innovation . To us , its a DREAM come TRUE . There is Lucas ,Chicago based business developer, David, Algo player, Jitesh Architect and automation specialist, Roy ,Hardware expert,Tao, Market making coder, Tick Doc , Tick Specialist,Umesh , Bitmex martingale expert, Alon , API Architecture and Christy and Angel , Overall Marketing Support , Marcus BTC Storage and Admin , Vincent Assets Arbitrager.
In the 1990s , 300 M Americans must have looked across 1 B people in China and wondered how to Profit and live off their hardwork , work ethic and diligence . Barton Biggs famously said in 1993 he was maximum bullish on China . 30 years on , the story has changed . On the back of China prosperity and a world where jobs are automated away and governments cannot be trusted to be disciplined in fiscal spending and have free access to free press to print money . Crytos is now the hot story for the next 30 years riding on the back of China ‘s 1 Billion people and several Billions in the world trying to escape 3 percent bank and credit card surcharges.
From our daily interactions with Digital Nomads all over in as far flung places as Nepal and Mongolia , people are asked to be paid in btc to avoid the banks and credit card charges 3 percent fee . So you can imagine why Crypto exchanges like binance ,bybit,bitmex,and a 1000 other crypto platforms are just getting started and the platform that leverages off the HFT market making infrastructure muscle are going to get stronger and win Billions of customers not millions. And knowledge comes from experience , our friend in poor nepal knows ,participates and understands more about bitmex trading than our most sophisticated friend in USA.
What innovations ?
- Perpetual futures contracts
- Hourly expiring futures contracts every 8 hours expiry
- Small , Standard Simple contracts to give billions the ability to trade .
The list goes on
Then came another call from luckbox the magazine of the top rich ,customers of tastytrades that has just received 20 m in VC funding , Why not do a quant story on China and tell readers what China will do ? My boss said might as well be good and democratic , give to all rich and poor , it doesn’t matter . We only live once , might as well be democratic and do some good before we go meet our maker . So here goes, the quant story follows .
Ok , we started to dissect the China question what will China do in 2020 first 3 months ?
The FXi is composed of these stocks
FXI Top 10 Holdings[View All]
So we took the top 15 names and deploy the Bird Turning Algorithm and came up with an expected return and risk reward picture as follows :
Let the reader go figure out the name s.
My boss spread out the numbers .
From 2018 to 2019 2 years the brain had 118 buys of which 27 made money vs 360 sells of which only 104 made money
The machine is disciplined to have a stop loss of 2 percent and that explains why 65 percent of buys lost money and 28 percent made money . Ok that’s the caveat ,now here comes the ncice part , if you follow it week in week out you get 50 percent return over 2 years for sells and buys 4 percent so 54 percent for a fxi benchmark that go no where from 50 to 40 in 2018 and 40 to 43 current price
Machine manage to take all that data and turn into money a strifght equity line
Who is our audience do they want to see a simple visual
Or they want numbers ? They want both , another rsign , everyone wants everything , the world should learn to live with less . less is more but in any case if interested here is the link to download
What if we are wrng we lose 2 percent sop out we engage china we are exposed to both its just not the time to buy . time to sell go buy these stocks go sell these stocks , You cannot buy hua wei
More sells than buys in last 8 weekes look back
We have to speak in shades of opaqueness , if we have a sell , we do not want to harm anyone A Foxconn , Hua wei company can give a b bionus to its 100,000 workers if we say sell , we may darken the mood . Try to be like the early google do no evil . Ok so we hide it using figues . Ok
Unless for obvious cases Baba , JD 007 tencent ok agreed so here goes .
Ok what about btc , we made this dec 18 , dec 17 made up all t=in that somersault , keep trading and remain calm ,. This is like a game , you just keep training and playing take your small loss and the big winds will overwhelm the lssses , btc etc , 15 mins and hourly . again download keep playing
It’s the hft firm again they want use to do a crypt project tick data and my boss sigh again what will bt cdo what will the world do ? i just love the cultures of HFT firms , one has a bla another named after Machiavelli
And another one resides in oak park chicago prefferiing to keep utmost low profile thought they are the king in cryyptos they keep a super low profile .
See this prediction do you know is it for next 8 minutes or for next 8 hours or next 8 days or next 8 weeks , Ok that’s the beaurty of fractal maths . When jim simons hee look sofr anomalies that persist for a shrt time he did not say that short could mean 8 hours short vs 24 hours or 8 weeks vs 48 weeks long . everthing is relative , These anomalies peris t and persist just like the current euphoria mood vs the foul mood in October when everyone were scared but if you download the spreads you see prior October we sold , octobe rwe bought so we must have some confidence to trust our machines more than we trust humand
At least machines will keep their mouths sht and keep secrets and not try to sell itself to the next hiughest bidder or competitor , amchines have integrity ,.
How to make money from 1 billion people ,look at china look at alibaa tencent blah blah look at fxi How to make money from several billion people bitcoin look at eth ltc balh blah
Got to stop writing start coding to make our code sing with hft infrastructure muscle run 24. 7
In the 1990s 300 million Americans must have wondered : How do we leverage off 1 Billion people I China and profit from their hard work . When do we do it , how do we do it . Presto FXI and china funds were borne
Its early 1990 , my boss was in his 20s and had accompanied Barton biggs as a young anylst , years later fxi borne , now that dream, to profit from a billion Chinese is real but its not always on long sid e
Got to stop writing start coding to make our code sing with hft infrastructure muscle run 24. 7
Yes Boss !
Get back to work
Published at Thu, 02 Jan 2020 06:53:19 +0000
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