Local arbitration


Is it possible to have a stable income in the current market conditions, while not exposing themselves at particular risk? Sounds a bit optimistic, but we will try to show that this is possible. Due to what is achieved? Not due to portfolio management in the classical sense. There is such a thing as arbitration.

A and B were sitting on the tube ...

In the market there is a predictable situation where an event A with a probability of 80% implies the event B. Now if isolate such situations and to hedge the rest, there is the possibility of a stable income.

I would like a little bit on the same program, already successfully tested on the market in Europe and the U.S., and is also known in Moscow. The program uses two immutable facts. The first - between Europe and America 6:00 difference. And the second - the American market, as half of the world's market capitalization has an important impact on how the day will open Europe. When in New York, 1130, in Europe, closed British and French markets, and in half an hour, and Germany. So, if America from 11.30 to the end of the day grows, increases the likelihood that tomorrow's Europe will open with a plus: the opening price of the European indices exceed the opening price of the previous day. Logically, this is understandable - if a 11.30 in the world there was something positive that America is on continuously and respond, and Europe could not, Europe is asleep. Therefore, all the nightly news, it will react when you open, and most - up. And so in four cases out of five! Here you have the ingenuous formula: event A - Move America 1130, and the event B - tomorrow the European response.

America - Europe = +

Now the question is, as in this to make money consistently. Builds up a certain transaction chain and consists of the following. Each day begins in money market - without taking any action. Time 15:50. 10 minutes before the closing of America's decision. If the day is at this point clearly demonstrated that it is negative, enter the market do not need - was serving <money> rest of the day. If the day <the zeros> same. And it is not because it is a brilliant foresight, but because it is revealed after the fact almost complete picture of the day <World Order>. If the day is clearly positive, then at 15.50 to buy U.S. mutual funds, which are entirely invested in Europe. European stocks to buy is no longer possible, the markets are closed, but you can buy a mutual fund, and many of these funds - about 800.

Next time. The vast majority of mutual funds, about 90%, are not traded on the stock exchange every minute, and estimated discrete - once a day. And they are evaluated at the end of the trading day in America, that is, after being purchased in Europe. What does the manager of this fund? It takes the briefcase, evaluates it for closure of the relevant market (and closure occurred in the U.S. 11.30), and divides by the number of issued shares. So is the price of one unit. Accordingly, in Europe to buy at prices that were frozen for us at 16.30, when the American morning news convince us of the potential profitability of such investments.