Surfing for ProfitsQ: You don’t rely on the standard technical indicators, oscillators,
moving averages? You have your own proprietary indicators that
you developed?
A: Yes. Several of my good friends are mathematicians and we
put them together.
Q: How many years did it take you to feel competent in this
game?
A: In FX, you know, it took me a while even though I was a good
trader before that. It took me a while before my mind realized I
could make money trading FX.
Q: Without giving away your secrets, what are the key things in
your mathematical algorithms that you find tend to prove them-
selves in the market? Is there an underlying mathematical truth to
the markets?
A: I think there is.
Q: Much of academic research talks about the fact that there’s
an enormous amount of randomness, that there’s very little sta-
tionarity in the data. [Authors’ note:Most academic studies show
that past price behavior has absolutely no predictive value to future
price behavior.]
A: Right, right. I don’t know [laughter]. That’s about a theory
and I’ve heard all the theories myself, too. I think it’s all going to
be theory. It’s whether you can make money on it or not. I be-
lieve that there’s a point where there’s a guy who has a huge bid
and then a guy who has a huge offer that no one can get
through—and there’s no randomness to that. So if you can un-
derstand what I mean when I say that, conceptually there is a kind
of formula for the market. But then there’s also going to be a time
when people are going to hit that offer so many times that guy’s not
going to be there anymore and the market’s going to a new place.