Chapter 526: Dots and Lines Walk Together
Wang Nuo does not doubt that Green Corner has the strength to complete the plan, nor does he doubt their investment plan.
You don't have to think about it to know that according to Green Corner's plan, with the help of Orenault, who is good at high-frequency trading, and Wang Nuo's analysis of the market, his $180 million can definitely be spent, and even if he loses, he will definitely have one billion yuan left.
If it was according to the original plan, Wang Nuo would not necessarily lose much, if it ...... The analysis is in the wrong direction, and it is normal to lose tens of millions of dollars, and it will take more time to repay the 9.5 million energy debt of the honest pen.
It's just that...... There is always a trace of unwillingness.
According to Green Corner's plan, Wang Nuo is sure that even if he analyzes the right direction, the final rate of return will be reduced by nearly 50%.
On the contrary, if you stick to your own point of view, although it means that the loss area has become larger and thicker, there are infinite possibilities.
"Setting a take-profit point too often can hinder my investment plans. After thinking for a few minutes, Wang Nuo hesitated, and finally rejected the plan proposed by Green Corner.
Although the investment plan of Green Corner is safe, it also locks in the maximum loss margin, but it needs to set a large number of take-profit points, which is too biased towards technical operations.
And Wang Nuo remembered one thing, if the arbitrage space of the yen system can be exposed for a long time, whether the yen exchange rate is up or down, high-frequency shocks are almost a foregone conclusion.
Insist on throwing the position on the "line" and resist the probability of a large loss, but it can prevent internal injuries from being shocked, and ...... You can do both at the same time.
Wang Nuo did not plan to make heavy transactions in the next stage of investment, his probability of profit on this investment is not as high as before, and the things used in this investment are much more than before.
Why can't both sides be carried out at the same time? Divide the funds into two parts, one part directly invests in the original way, and the other takes the green corner method to carry out high-frequency, multi-threaded transactions, but even if the green corner scheme is adopted, Wang Nuo needs to determine one thing.
"David, I still have that view, if I think the arbitrage exposure is still large enough, I have a short-term bullish argument on the yen, has this been included in your trading plan?" Wang Nuo looked at Green and asked.
"How big is that?" asked Green, rhetorically.
"In the first quarter, 1%, as long as there is 1% arbitrage space in each quarter, it is large enough. Wang Nuo quickly determined the lower range.
"While we tend to think that the arbitrage space will actively shrink or even close, ...... Yes, there can never be only one solution for the green corner, and among the possibilities we have listed, there is this. Green said: "You don't have to worry, if this happens, we will set the position point more closely, the take profit point will be higher, and the possible profit and loss margin will also be higher." ”
"The stakes are also higher. Jonas interjected as an analyst and was responsible for a portion of the risk assessment of the Green Corner team's investment program.
"If a similar situation occurs, I think the frequency of oscillations will be relatively high, and it is necessary to reserve more pressure space, which may compress the income space at that time, but ...... An increase in the frequency of trading may also lead to higher returns. Oreno pursed his lips, his expression full of anticipation.
Narrow high-frequency oscillations, in fact, the most test of the trader, a master like Oreno, most of the time like this kind of market, which means that he will become the temporary core of the team, but also represents that the time has come for him to show his talents.
Wang Nuo is worried that high-frequency shocks will reduce the yield of high-frequency trading, but for traders, when they see that the high-frequency shock phase is coming, they will quickly adjust their strategies, set the take-profit point closer to the position, and then make more trades.
Usually it is ten times eight times per minute, if the frequency of data fluctuations is higher, then it is 180 times per minute, and confident traders like this situation the most.
"Is it possible not to set a take profit?" Wang Nuo asked.
"Not recommended, that would be equivalent to an increase in the maximum loss margin of the locked, unless the ultra-short-term data as a whole is unilateral, you can't guarantee that most of these lines in 5 minutes, 10 minutes, and 20 minutes will be unilateral. Aureno shook his head.
"At some point in time, what if I think that's the case?" Wang Nuo thought of a possibility.
"Are you crazy? You might as well give up on this model. "Aureno almost blew up.
For example, if you sell short at 115.00 and take profit at 115.05, you may earn 0.035 after you reach the handling fee, and if you go in the wrong direction, you may be liquidated at 114.99, then you will lose 0.025 if you count the handling fee, and if you zoom in, it may be 0.04 and 0.05, but the probability decreases with the increase in the expected return figure, and the loss range is always 0.025, and the loss probability is roughly constant.
This means that if you make a narrow profit, you may be right 50 times out of 100, and the expected return figure is even higher, so 100 times may be right 30 times, 20 times, or even 10 times 8 times.
On the other hand, magnifying the expected return figures, while at the same time bearing a constant probability of loss, the meaning of betting on unilateral is relatively strong.
The advantage is that when the big strategy goes wrong, the loss margin here is still locked, that is, about 0.025 per order, and even how many orders are lost, in addition, there is another advantage of not setting the take profit point, that is, the rate of return is theoretically infinitely high.
A high probability of loss in exchange for a greater possibility, but the probability of a loss is large and the loss range is locked, which is another formula, and Oreno does not like this, because ...... He's strong.
If you have the strength, you will be sure that you will get the due benefits in the case of no matter how the market changes, and the more the market changes, the happier you are, which means that opportunities and risks are surging at the same time.
But if you don't set a take profit, it means that the formulator of the investment strategy has intervened in the trading work, and the restrictions on the trader will appear.
Ye Yaohua may accept this arrangement, but Oleno will definitely say that he will not serve.
"So, I'm going to divide the funds into three parts?" Wang Nuo understood Oreno's attitude, but immediately revised the investment plan.
The first part, investing normally, takes all the risk of loss and also wants to eat up all the expected gains.
The second part, the high-frequency trading suggested by the green corner, is to rely on strong strength, eat the vector probability on the numbers, the probability of profit is the largest, but the expected return is definitely the smallest, because the technical content contained in it is too high.
The third part, to build a position with points, disperse the entry point, lock the loss range, bear the risk of a large probability of loss, bet on the market to go unilateral, the big strategy and delicate trading techniques in parallel, when the market is suitable, the income can barely catch up with the first part of the investment.
The combination of the three has only one purpose: to get the highest return in the lowest risk area as much as possible.
To complete this kind of investment, Wang Nuo and his team are not strong enough, plus the green corner, and then pull in Tyrone International to help, but it is just right.
But there's a problem with that......
Wang Nuo felt that his team and Green Corner would intensify the sense of competition.