ALPHA GROWTH CAPITAL
  • Home
  • Investment Strategies
    • NEXT-alpha
  • Services
    • Products
  • Join Us
  • Articles
  • Contact Us
  • Terms & Conditions

Sharing Our Thoughts

MATHEMATICS & Success in the financial market

13/11/2020

Comments

 
​Before you read any further, I would like you to focus on the image below and think for a minute or two if there is a pattern in what you see.
Picture
Like me, probably you have not. But… I ensure you that these lines were drawn by a mechanism that follows a given set of laws of physic: the double pendulum 
If you know the geometry of this pendulum and the forces acting on it then, with the right background, you will be probably able to have a given set of equations to describe its motion and its apparent randomness.

In my opinion, the financial market is as random as a double pendulum. Meaning: it is not; or better not fully. I wrote a couple of articles in the past on how the value of Gold and the S&P500 can be modeled knowing the fundamental blocks of the American economy. Without sudden external forces or changes, the direction of the movement of the pendulum, market value and gold can be forecasted with a good degree of accuracy.

Going back to finance.

If you like investing in stocks and you are good at picking them up then probably in the very long run you will be able to generate an annualized 18% (this is what Buffet did in the last 32 years). You would have nearly over performed the S&P500 by a factor of 2! The index returned 9.8% in the same timeframe. 18% might not seem that much but investing $10,000 for 32 years the Buffett's way, you now would have nearly 2 million USD.

Many of us (myself included) do not know, have no interest or have no time to go through financial statements of companies to choose which ones have high growth potential. Despite some of us are able to figure out patterns from something that in appearance looks like a chaotic system. In my opinion the most successful person at mastering this skill is the American mathematician Jim Simons. In one of his rare interviews, he claimed that he has no interest in reading financial company statements but he saw patterns in the prices of commodities. This gave him the idea to start trading and profit from the knowledge of these patterns. The result? 40% annualized return (net of fees, 66% gross) with only one single negative year. In perspective, investing the same $10,000 with Renaissance, after 32 years, the money would be worth north of 474 million USD.

Comparing investing and trading:
Picture
This brings me to my last point. Truly understanding the mechanism of how stuff works can create a major competitive advantage. A mathematician (very intelligent) managed to solve the market using mathematics rather than financial statements.

If he did it, we can do it too. Key being: patience, time, knowledge and smart work.
Comments

    ​Join our monthly newsletter, it is free!

    ​At the beginning of the month, we send out an email reviewing the performances of NEXT-alpha, provide the S&P500 and Gold outlooks based on our proprietary models and the asset in which NEXT-alpha will be invested for the next 30 days
Subscribe to Newsletter

PAMM Account

Suitable for people with limited investment capital; min $100. With a PAMM account, the investor can copy-trading NEXT-alpha at a click of a button.
  • Want to know more? Contact us!
  • Want to copy-trading? Type your email and click the button below!
Click here

Subscription*​

Suitable for individuals with at least $10-20,000 as investment capital that would like to implement the strategy themselves in their brokerage account.
​
Scroll below to know more on what the subscription includes and how it works.
It is only 37.5 USD/month!

Separate Managed Account

Suitable for investors with at least $100,000 to invest that would like Alpha Growth Capital to manage the asset on the client behalf.

Trades and performances are reported in real time, the client has the intraday liquidity, the funds are held with Exante and there is no lock-up period.

​Want to know more? Contact us!
​
SMAs are only provided to certain countries. 

The information, analysis, data and articles provided in this and through this website are for informational purpose only. Nothing should be considered as an investment advice. Alpha Growth Capital LLC does not make any recommendation to buy, sell or hold any security or position. The website and information provided through it are marketed “as is”. There is no guarantee that anything presented and provided on this and through this website is complete, accurate and correct. Relying on the information provided on this website and through its communication channels is done entirely at the individual own risk. The owner of Alpha Growth Capital is not a registered investment advisor under any security law and nothing provided in this and through this website should be interpreted as a solicitation to buy, hold or sell any mentioned financial product or service. Past performance is not indicative of future results. Any financial decision is at the sole responsibility of the individual.
​

By navigating in this website, you agree to its Terms & Conditions
​
  • Home
  • Investment Strategies
    • NEXT-alpha
  • Services
    • Products
  • Join Us
  • Articles
  • Contact Us
  • Terms & Conditions