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Hello! This is Tejima from GogoJungle.
Our hugely popular content: a conversation series between our CEO Hayakawa and developers!
This time,TriParity Labs - Kazhas joined us.
Mr. Kaz has given us a free gift that shows, from the “laws of physics” of the FX market, where the biggest distortion is right now. Please check the password in the video.
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| IT Consultant and Trader, Winner of a National Mathematics Award in the U.S. |
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TriParity Labs - Kaz
A logic developer who fuses mathematics, architecture, and practical trading. Familiar with self-made development in BASIC since childhood, he moved to the U.S. alone after graduating from high school in Japan. Majored in mathematics and art in college, and architecture in graduate school, winning a national mathematics award in the U.S. He currently works as a consultant at a major global IT company. Entered equities in earnest in 2002 and FX in 2012. After significant early losses, he established a trading philosophy centered on “losing small,” “maintaining discipline,” and “thorough verification.” By leveraging the triangular currency parity concept and risk management, he successfully managed the severance pay from his previous foreign-affiliated firm. He purchased a long-desired condo in Tokyo, designed a full renovation himself, and completed it last summer. He has productized methods that worked in live trading as the “Intervention Aftermath” series. He adheres to a development philosophy of “only releasing tools I truly want to use myself.”
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The origins of investing and how to build “success experiences”
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| First, may we revisit your background, Mr. Kaz? You studied mathematics and architecture in the U.S. and also received a math award, correct? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| I’ve always liked mathematics and continued studying it in the U.S. Including architecture, I leveraged skills in IT, math, and architecture, and also gained experience in project management to set up the physical infrastructure of a major foreign firm’s trading desk. |
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| And the starting point as an investor was around 2002… is that correct? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Yes. After returning to Japan from the U.S., influenced by my father who invested in stocks, I started by imitating my parents. |
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| You mentioned that in 2005 you had a “solid success experience” with stocks. What did that feel like? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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I was surprised. It was risky, but I strongly felt the potential. It became a major success experience. |
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| And that success experience became the foundation of your asset building? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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That’s right. That’s where the sense of “this might work” was born. |
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| When did you fully shift into FX after that? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Around 2012. Unlike stocks, there’s no time limit, and the market size is large—those aspects attracted me. |
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The “7 struggles” faced in FX and Mini me (the me within me)
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| You mentioned that as you worked on FX, you verbalized “7 struggles.” What was the first one? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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The first is being a multi-currency watcher. Because I like analysis, I overthought the relationships between multiple currencies and ended up with endless indecision. |
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| The second is being an “entry on a whim” type. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| The ideal is to win without thinking, but in practice it doesn’t work at all. I realized I wasn’t yet in the professional realm. |
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| The third is being a “backtesting maniac.” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| I did historical testing on weekends—say, using the Ichimoku Kinko Hyo, I’d think “this pattern will win,” but the next week the movement is completely different. I realized statistics and current events are not necessarily equal. |
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| The fourth is the time issue unique to a “busy part-time trader.” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Work during the day, family at night. I can trade after 9 p.m. during London or New York hours. There are days with no opportunities to enter. Frustration led me to take positions during the day the next day for no good reason, and I lost. |
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| The fifth is the struggle as an “emotional trader,” perhaps? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Yes. For example, when holding an unrealized loss, even though I’d set rules for stop-loss, I would change the rules—that was my struggle. I realized I needed to create a plan before taking a position. |
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| The sixth is the issue for “structure-focused, advanced traders.” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| I constantly researched pro traders’ techniques, but I had the struggle of not quite arriving at methods that would make me a pro. |
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| And finally, the seventh was being an “overconfident trader.” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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I once increased my account 100-fold in 5–6 months, which led me to the illusion that the market would move as I wished. Confidence turned into conviction, and conviction into overconfidence. |
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| Through those seven struggles, what answer did you ultimately arrive at? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Decide your plan in advance and adhere to your maximum acceptable risk. In the end, I became convinced that risk management is everything. I introduced a system mechanism to place stop-losses. That allowed me to steadily grow my assets and even purchase a condo. |
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Expose the moves of big players! The idea of triangular currency parity and the “Distortion Oscillator”
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| Here comes the crux. You said the idea connected from researching “arbitrage.” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| As I investigated whether there are winning methods, I arrived at the world of arbitrage. However, it’s nearly impossible for a retail trader to reproduce it as is. |
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| So you thought, “Even if it’s impossible, can’t we use the principle?” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Exactly. There’s a principle in the arbitrage “triangle.” So I dug deeper, asking whether we could statistically expose the footprints of big players intervening. |
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| Not inter-broker arbitrage, but focusing on the relationships between currencies? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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Yes. Although they should form the same shape, sometimes they don’t equalize and distortions appear. Statistical news and the like can also break the shape. |
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| Large interbank players come in to eliminate the distortion, restoring the triangle’s “distortion,” so to speak. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| And the successful extraction of that was the “Distortion Oscillator.” |
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| TriParity Labs - Kaz |
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| Yes. We succeeded in extracting the triangular system’s logic as an oscillator. |
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| Next time, we plan to dig deeper into “how to statistically analyze footprints” using that mechanism. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Please look forward to it. |
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| Episode 1 |
| Special Dialogue: The seven major struggles of investing and what is the currency-pair version of arbitrage that exposes the “footprints of big players”? | TriParity Labs - Kaz / Episode 1 |
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