Monday, July 27, 2009

OK lets play nice. Beating the FREAQers !!

Notice I didnt say "PLAY FAIR". We never need to stoop to the tactics of the enemy in order to defeat them, we can use our perception, our powers of understanding, to beat them. As in the "Karate Kid", your "FORCE" is simply their energy re-channelled.

Therefore like Pat Morita taught "The Kid" in his "Wax ON, Wax OFF" routine, its the basic's and discipline. Leave catching a fly with chopsticks to the FREAKS, if you follow the logic in the Hi-Frequency Trading pattern, you can see its logical flaw, for it if makes prices go RiGHT UP TO THE LIMIT, and makes it move in an EXTREME MANNER, they you know it has exxagerated or accelerated the move. Now, you can place that piece knowledge in with your other tools TO MAKE YOU MONEY.

What we do, is as simple or complex as we make it. Therefore, your understanding of the basics, not a technical twist or trick, will work.

In this case, there is a HUMAN at the wheel, and so "algo's, "Quants", "Black Boxes", in the paraphrase of Admiral Farragut, "Technical Tricks be damned, human's full speed ahead ! ! ! ". In a more ZEN fashion, use your human nature foil what is not human.

To recap: FREAQ's cause price acceleration and exageration To A Point, WHICH COULD BE UP OR DOWN ! Knowing that, act accordingly.


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