I came into this business from the real estate field where among other tasks -- I was a Certified Property Manager. I came
into the trading business as a Commodity Trading Advisor (CTA) because I became more passionate about developing models for use in
trading markets. I was working as a financial consultant on the stock side with Merrill Lynch in Kansas City, Missouri during
October of 1987 when the Dow lost about one half (1/2) the value during a one day crash.
As a psychology major this only boosted by interest in market dynamics -- and finding a modeling solution to the drunkard's walk.
Textbooks tell us that much of the problem is that market dynamics are like a drunkard's walk. Over several years it occurred to
me that the drunkard's walk was a misconception. It's actually a data visualization problem -- created by how market dynamics are
represented in charts.
I developed an early solution which improves how market can be visualized -- then wrote a book about it in 1989 which implied
that -- algorithms would be the key to improving human perception of how markets work. In short, algorithms could do a better job
than humans in representing the data -- which in turn would enable us to make better decisions.
By 1991 this work led to my name appearing as number two (2) CTA in 4th quarter 1992 Managed Accounts Reports. My name like
most money managers -- on performance report -- fluctuated widely. I discovered more details of how to improve my solutions as I
managed money for a ten year period. It was an invaluable experience to evaluate a wide variety of strategies which I discussed with
other professional traders.
During the same period I formed a consulting relationship with a floor trader of 20 years who was also a psychology major.
This helped me gain insight into the visual and audio clues floor traders use to become proficient as wholesalers who use their edge
to make money make money on the spread as market prices vary. However, I also learn that floor traders attempting to move to
electronic platform could take 10 times as long to trade from a screen -- no matter what level of success they obtained on the floor.
I saw this over and over again as traders attempted to migrate from the floor to electronic trading. Track records made little
difference as only the most perceptive and persistent floor trader were able to survive the transition to electronic market makers.
My belief in the drunkard's walk as a perceptual problem with a huge potential has been reinforced by major market meltdowns
costing trillions of dollars such as the 2008 financial crisis. We witnessed huge sums lost with the dot com bubble, savings and loan
industry, energy and equity sectors. When market bubbles burst, more people tend to be on-board -- so the impact is greater.
I moved into the technology end of the business to develop a game based approach to solving the drunkard's walk. My solution
has enabled several powerful innovations such as an efficiient way to derive and use the mathematical advantage to buy attractive
equity curves. I'm happy to provide investors and traders with details on how our technology derives the advantage -- so they can
function as market makers and trade with a positive mathematical expectation over the long term.
I'm joined by group of diverse, technology and market savvy individuals that know how to develop innovative algorithms and
strategies that improve trading and risk management performance. By combining high level local talent with offshore resources and
support -- we are able to leverage cost effective solutions to lower client cost while improving their performance.