The life and thoughts of a full-time trader who has reached XX hundred million, and the publication of numerous trading methods 2

The Life and Thoughts of a Full-Time Trader Who Has Reached 〇〇 Billion, and the Disclosure of Various Trading Techniques 3

In this interview article, a new sales representative from GoGoJungle accompanied the interview and spoke with the full-time trader to hear his story; though it is imperfect, we are delivering the article to everyone.

When I accompanied the interview and met the full-time trader for the first time, as I approached his seat, he stood up to greet me before I could greet him.

He is a professional trader, yet so humble that you would not think he manages funds reaching 〇〇 billion; he embodies the famous anonymous haiku "実るほど 頭をたれる 稲穂かな" (The fuller the grain, the more the head bows). Although it was our first interview, we could feel his character from the moment we met, making it a wonderful interview.

From the outset, we could feel the full-time trader's character in this interview, but the previous article covered his trading, how he won too much leading to an account freeze, and topics on indicator trading and Canadian employment statistics.

In this interview, he shared many insights on his methods, his thoughts on indicators, his trading environment, and many things he hopes readers will learn.

The first thing the trader spoke about was the reason for the account freeze.

The circumstances leading to the account freeze are as mentioned above: winning too much, and continuing to profit using the same method with large sums of capital causes the market to learn.

“There are various factors such as AI trading, the big financial institutions' algorithms that run on high-performance PCs, and investor learning, but if you continue to buy and sell with amounts above a certain threshold, the market will learn and you will stop winning,” he said, and

“Moreover, it is an honor when a method or indicator ceases to work.”

“If it stops working, then it was a useful method, so you should move on to the next one.”

He continued speaking.

Indeed, with many indicators and system trading, performance can suddenly drop or slow down.

There are factors such as seasonality, politics and economics, and natural disasters; however, as other assets keep winning, one's performance can suddenly drop. This might be the answer to why.

He noted that there are conditions tied to the amount of capital traded; once you surpass about 1 billion, the market begins to learn the method and countermeasures are implemented. Conversely, if you reach 10 billion, you can contend on equal terms with those measures.

There is no concrete proof, but based on his trading experience and the circumstances surrounding the account freeze, he is convinced: in the past he warned to keep Lot sizes smaller, but many did not comply, and by increasing Lot sizes, the capital involved in that method surpassed a certain threshold, leading to worse performance on multiple occasions.

“Since hundreds or thousands may buy, the quantity should be limited, and the system should impose limits on Lot sizes as well; otherwise, eventually the market will learn and performance may deteriorate.”

Some may regard it as nonsense or excuses, but when you hear the full-time trader’s stance on trading and his trading environment, the credibility of his claims becomes apparent.

The full-time trader has prepared a dedicated trading room in a certain location in Tokyo to be on par with, and even to beat, major financial institutions.

The fiber-optic line is connected to the world via submarine cables, and the arrival point in Tokyo near which the line speed is fastest. Moreover, near the data center of Company A, close to the exchange and financial service access point called “TY3,” he has rented a dedicated trading room to compete with and win against the world.

Additionally, at the request of a friend at an electric company, he pulls the fiber line directly from a utility pole. The PC is a custom-made high-performance machine with all unnecessary data from gaming PCs removed.

The full-time trader is making his utmost effort to win.

Why does he assemble such an environment?

Why does he have to go to such lengths?

“FX ultimately comes down to who can get there first; when chasing a rate, everyone seeks even a slightly better condition. You must be able to outpace others with hardware, fiber speed, and sub-second timing to win.”

I could feel the amazing effort the full-time trader puts in to keep winning.

Because of such a trader, he often speaks forcefully about changing the perception of money in Japan, and the culture that views financial literacy negatively and is reticent to talk about money. He says, “With my words, I want you to destroy your beliefs about money for survival and learn price theory. Keep trading and develop your sense.”

“'Kaku' (覚) means to feel and know, to clearly understand, to realize, to awaken. He urged everyone to cultivate 'kaku'.”

There were many more stories he could have shared with humor, but this is the topic that most of you are curious about.

I would like to introduce a partial glimpse of the trading method you taught us in this interview.

This method is a currently popular one on GoGoJungle, and it turns out that one of its top sellers is actually the full-time trader’s apprentice—a shocking fact revealed—and the method can be used as long as the underlying mechanism exists.

One of GoGoJungle’s top sellers was his apprentice.

That apprentice refined the method and is now thriving on GoGoJungle—a trade with a notable backstory.

I believe the full explanation will appear in the full-time trader’s serialized articles, so here I’d like to share a simple overview of the mechanism.

The method uses something equivalent to the 'nakane' (the middle rate) used as a benchmark in Tokyo; in foreign exchange trading and in overseas physical trades such as precious metals, the decision of prices is made. Settlements for various financial instruments occur in patterns like quarterly, year-end, or month-end, but overall they are conducted at the end of the month.

When the investment destinations of financial products are diverse, such as North America vs Europe or North America vs South America, if one market is performing well while the other is underperforming, financial institutions perform rebalancing at settlement.

Rebalancing basically means applying the profits from the rising market to the market that fell, and by rebalancing, the rises and falls of the two markets are averaged out.

By deciding before the end of the month which country's market will rise by a certain percent and which will fall, and trading accordingly, you can ride the wave of rebalancing and gain profits.

The full-time trader: “It's like ‘convergence of the spread’ in stocks.”

That was the trading method.

To explain the flow,

Toward the end of the month, compare certain markets with each other and convert their up/down movements into percentages.

↓

Funds flow from the winning side to the losing side, so you buy the currency of the market that is losing.

↓

Rebalancing occurs

↓

Profit

That is the flow.

When I asked, “Is it okay to use such a simple method?”

“Complex systems break down when broken; simpler ones are better.”

“Creating something complex is nothing more than self-satisfaction.”

He spoke these strong words.

I’m looking forward to the full-time trader’s content, which generously shares such an amazing trading method.

In his content, you can learn about his approach to investing, money management, and the details of the trades discussed in this and the previous article.

For those interested in trading or who resonate with the full-time trader's views, this could be an excellent learning resource!

Please look forward to the full-time trader’s article.

written by Ishii