Thursday, July 5, 2012

Police As Traders?

Hardware: 
These traders are mobile- so they need a car. This gets them to their trade location (more on that in a bit). Speed Radar, Pallets and a Police Radio to check out licenses/insurance etc.

Passive aggression: They don't do it to us, WE do it to ourselves.
Risk: 
Time and the officer's hourly pay.

Reward:
Speed fines and fines in general.

Methodology:
(for speed, we'll assume long trades only..)

They find their edge by waiting at that spot on a road where a drastic change in speed limit occurs. They'll hide just before the "resistance"- point of change- in anticipation of a breakout. Odds increase if they do this during rush hour as they know drivers will anticipate the change and try and get ahead due to sheer haste/impatience.

Another method they commonly use is sitting themselves at the bottom of a hill- people tend to forgo controlling their speed and let gravity get the better of them! This could be viewed as Momentum trading- a body in motion, "stays in motion until an equal and opposite force acts on it" (your will to be the captain of your situation).

Win Rate:
They can increase this simply by compounding the above methodologies- for example, waiting at the bottom of the hill, during rush hour where a speed change occurs from fast to slow. Do this all on a pre-holiday workday and....



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