July 1st, 2021

#Price, #Volume, #Sentiment

Price discovery and our search for continuity in a random world. is built on mathematical principles. We stay away from opinions. In our content throughout the platform, you'll see a persistence to try to remain on the quantitative side of the fence, rather than the qualitative. From time to time, we'll introduce qualitative things for you to ponder over, but we'll direct you towards the tangible application of these qualitative topics (i.e. narrative applications within measures of sentiment for best-timed entries and exits into investments).  

We're firm believers that markets move on price, volume, and momentum (participant sentiment). Humans are a eusocial species (a species that rapidly shares information) and we'll naturally react to/from that information. We're technically one of four eusocial species on the planet (ants, bees, and termites are the other three), and we're massively influenced by the narratives and information that we share. Since we're all influenced by (and make decisions based on) the information that we're sharing, it's imperative you decide how you're going to use (or be used by) the information to make investment decisions.

There's so much information now available to us, we think it's very difficult to interpret the qualitative (quality) of data anymore. Therefore, we focus on the quantitative (quantity) data. This means we look for fractals (consistencies and patterns) because we believe that men lie (WeWork), women lie (Theranos), but numbers don't (XIV meltdown in February 2018 was mathematically a high probability). We focus our efforts on actual mathematical probabilities instead of narratives and stories that are running wild on mediums like Google, Instagram, and Twitter (which may or may not be crafted to direct us to do something). 

In the most basic context, when we're thinking about investing into something, our approach is that once we have an investment idea (or are told about one), we should analyze: 

  1. Price - what does this cost in comparison to how much it's cost in the past and how much it could cost in the future?
  2. Volume - where's the volume of buyers doing business at right now for a particular security versus where have they been previously?
  3. Momentum - what's the sentiment of the population of buyers and sellers right now (short term) and in the big picture (long term)? 

You'll notice that nothing we mentioned above has anything to do with WHY you should buy a stock, bond, ETF, mutual fund or option. Why things move is subjective. What matters to us – and what should matter to you – is that they move and how they move.  You get a different take on the markets when you have easy-to-use algorithmic tools to check the mathematical reality of what you're being sold or told (or what you think might be a good investment idea). There are a million different investments you can come across every day (the world is very random), so it's extremely useful to have investment tools to help you check the mathematical reality of your ideas and even provide you with potential opportunities you might not know about.

Price discovery is very important to identifying successful investments. Investments with successful continuity is what you're seeking. In a random world, with so much information, how do you accomplish these two goals: price discovery identification and continuity? You need reality-checking tools – and that's why we created

Get a mathematical reality-checking tool. Get vig. Price Discovery
TagsTechnicalsMacroGeneral InvestingBehavioral FinanceChartingAlgorithmsPriceVolumeSentiment