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Hello! This is Tejima from GogoJungle.
Our hugely popular series: a conversation between our CEO Hayakawa and developers!
This time, we’re joined byTriParity Labs - Kaz.
From Mr. Kaz, we’ve received a free gift that reveals, from the “laws of physics” in the FX market, where the greatest distortion is right now. Please check the password inside the first video.
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| IT consultant and trader awarded by the Mathematical Association of America |
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TriParity Labs - Kaz
A logic developer who fuses mathematics, architecture, and live trading.
Familiar with self-made development in BASIC since childhood, he moved alone to the U.S. after graduating from high school in Japan.
Majored in mathematics and art in college, and architecture in graduate school, receiving a national mathematics award in the U.S. Currently works as a consultant at a major global IT firm.
Entered stocks in 2002 and FX in earnest from 2012. After large early losses, he established a trading philosophy centered on “lose small,” “maintain discipline,” and “thorough testing.”
By applying the triangular currency parity concept and risk management, he successfully managed the retirement funds from his previous foreign-affiliated employer. He purchased a long-awaited condo in Tokyo, designed a full self-led renovation, and completed it last summer. He tool-ized methods that worked in live trading as the “Intervention Aftermath” series, adhering to his development philosophy: “Only release tools I truly want to use myself.”
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What is the “distortion” born from triangular arbitrage?
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| You touched on this a bit last time, but in triangular arbitrage, “parity (equilibrium)” and “distortion” are key ideas, right? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Yes. Distortions that shouldn’t exist in principle are constantly occurring in the market, and a very strong force works to restore them. |
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| And you apply that “restoring force” to trading? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Exactly. We capture the “footprints” of distortion statistically, visualize them, and use that for trade decisions. |
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| Why does that distortion arise in the first place? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Because among the three currency pairs that form the triangle, one moves ahead first and throws off the balance. |
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| I see. So it’s important to know “who’s taking the lead,” right? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Yes. That’s why I call it the “culprit.” |
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Three logics that quantify distortion
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| How many major points form the core of this logic? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| There are three. First is visualizing distortion with a score. |
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| Like a deviation score approach. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Yes. We judge on the bell curve whether something is “anomalous or normal.” |
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| Second is “identifying the culprit.” |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Right. If the three currency pairs were even, it’d be 33.3% each, but when there’s distortion one takes the lead. We show that as proportions. |
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| And the third is the maximum contribution rate. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| It’s a logic that quantifies which currency pair is leading and how strongly. |
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Roles of the Scanner, Catcher, and Nowcast
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| First, what problem does the Scanner solve? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| It solves my past problem of “looking at too many currency pairs and getting confused.” |
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| From the triads (triangles) of 21 currency pairs, it can extract the ones to target. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| Yes. It also shows recommendation levels with stars, helping you decide which to use. |
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| Next, the Catcher is the core of trade decisions, right? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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| With an oscillator score, you can visually grasp phases of large distortion. |
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| Gogonyan |
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| TriParity Labs - Kaz |
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It’s a filter that judges not just past statistics but whether “right now” is a tailwind or headwind.
In reality, what we want to know isn’t the “past” but the “present,” right?
It reviews timeframes in multiple timeframes to judge the “now.” It can also be used as a second opinion alongside other indicators. |
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Thank you. Today you explained “Intervention Aftermath Pro.”
In the full video, there’s an even more detailed explanation, so please check that out as well.
Lastly, could we get a message from you, Kaz? |
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| Gogonyan |
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| TriParity Labs - Kaz |
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I’ve personally used many indicators, but until now I only ever looked at two currencies.
With this new logic, we look at three currency pairs, so it’s like dealing with 3D instead of 2D.
And I only use this indicator.
I developed this indicator to solve seven of my own pain points, and I’d be happy if it offers even a small hint to solve yours.
I’ve tried to write as clearly as possible, but if you have any questions, feel free to ask via comments, DM, or in the community.
I hope I can support you in running PDCA cycles that lead to better trading results. |
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| Episode 2 |
| Who creates distortions in currency pairs?—A hypothesis suggested by triangular arbitrage logic | TriParity Labs - Kaz / Episode 2 |
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| Episode 1 |
| [Special Talk] The 7 major investment problems and a currency-pair version of arbitrage that reveals the “footprints of big players” | TriParity Labs - Kaz / Episode 1 |
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