A Failure Might Be Imminent: Surviving a Dying Hard Disk

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Well, just days into my trip the unimaginable happened. My trusted laptop suddenly popped out a warning message telling me that the hard disk has encountered hardware failure and it is going to die soon. I am told to backup the computer as soon as possible.

I have not seen this message for at least 10 years. Not on my computers for sure.

Before that, I have seen it once or twice happening on someone else laptops.

I have dealt with hardware failures many times. Hence the recommendation I always make to others that they should backup their computers regularly. And I backup my computers religiously all the time.

But having this trouble in the middle of a trip where I needed the computer most is a first time.

I have already backup the computer completely over the past 10 hours. It took that long to backup everything I have on the laptop. I am taking no chances.

But now what?

I could not find a computer store nearby that is open. I am not sure if I can buy a replacement hard disk in coming few days.

The wait and see is getting me slowly.

Flu Got Me, I Got Oregano Oil

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After years of sickness free life, the flu in this season finally got me. The soreness and aches are real, as the battle between my immune system and the flu virus is going on fiercely. Since there is really no cure for flu, I have to tough it out. However, there are ways to reduce the ailments and shorten the recovery time.

To manage the symptoms, the obvious choice is using painkiller like acetaminophen to control the fever and reduce the pain from muscles and bones. For cough related symptoms, however, I find using oregano oil is much better than using the cough syrup from the drug stores.

First, make sure you get at least food grade oregano oil. If you happen to have access to oregano essential oil, it is even better.

Put a few drops (5 to 10) of oregano oil in small amount of water. If it is essential oil, put in 1 to 3 drops to start with because they are way more potent than the regular one. Then mix it hard with a spoon or whatever because you do not want to consume too much of the oil all at once. Some people choose to mix oregano oil with coconut oil instead and that works well too in my experience.

Sip a little of the mixture and keep the liquid under your tongue. This is the fastest way for us to absorb the substance within the oregano oil. The burning sensation will kick in pretty quickly. The experience here is the reason most people will give up the remedy. Hence start with a more diluted liquid and increase the concentration of oregano oil up to a level you can still tolerate.

After 30 seconds or so start letting the liquid to dip down your throat. Oregano oil has anti-inflammation property and the ability to cut through the phlegm. It also helps your throat to recover a bit faster. Aside from its awful taste to some, I think oregano oil is a much better cough control substance comparing to the cough syrup out there because it does not make you drowsy so that you can actually carry out your day like normal if you choose to.

Repeat this process 3 to 4 times a day will keep the coughing under control.

There are other benefits with consuming oregano oil like keeping our appetite up which contributes greatly towards a speedy recovery.

Just a reminder though, to recover from flu, the tried-and-true method of resting a lot and drinking enough water is still the best way to go.

Hang Seng Index: Unbelievably Easy to Work on

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I am working on trading models for trading the Hang Seng Index. It is a cooperation project among multiple parties. I am quite excited by the idea that I am taking my financial technologies and trading experience to challenge the best minds in the Asian arena.

To my surprise, in the initial phase of this project, for which I expected a lot of difficulties in terms of data collection and information gathering, it is so much easier than working with the S&P indices.

For S&P 500 and the other related indices, one of the challenges is to figure out all the historical components of the indices and the exact time for which these components are part of the index calculations. S&P makes it so hard to figure this out even though it is something that should be made available to the public. It took investigative work to track down all the changes that I explained in one of the chapters of Market Breadth Primer.

However, working on Hang Seng Index, it is so easy to gather such information because Hang Seng Index has its own official website with everything you need to know about the indices are made available. I have to praise those working there that they are doing such a great job that S&P should be ashamed.

So why venture into trading the Hang Seng?

Well, I can see that the financial system is not going to be stable going into the future. Counter-party risk will be again in the spotlight soon. That means trading European markets is definitely not a good idea. Trading only instruments in North America is also not a good idea if bad things happen to the brokerages and clearing houses here. So, having presence in Asia now and eventually building this up to include more countries there will be a very good way to take my trading to the next level.

How Scientific Approach to Meditation Revolutionizes this Gift from Our Ancient Past

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Meditation, the mystical practice that has gained so much recognition lately from the Internet, has been around for literally thousands of years in various forms and styles. It gained its flame because of the supposedly superpower you can unlock within yourself like becoming wiser, calmer and perform better in almost everything. However, for normal people who tried to learn this, more than half of them are likely not able to benefit from practicing meditation. In fact, it is creating more frustration and confusion than helping out these people to live a better life. After all, it was called a mystical skill for a good reason. Well, thanks to latest scientific research and technology, this ancient technique of training our mind is now much more learnable than ever.

I touched on this subject of meditation over the years but I tried to minimize the coverage because of several factors. First, it was much less acceptable to even talking about meditation just ten years ago. It was even namely as “evil” when you whisper the name to someone whose religious background somehow tainted by bad information. Second, self learning meditation is always difficult because there is no easy way to track one’s progress in such training. Unlike learning a subject with scientific facts that you can be quizzed later on to see how much you remember or understand, a normal person do not have a simple way to self assess the improvements they have made from practicing meditation.

Modern meditation techniques introduced by many famous gurus actually helped a lot more people because they simplified the whole concept down to something much more tangible. For example, the famous one-moment meditation has been helping so many people in dealing with their everyday stress and hectic lives. There are many scientific researches made public that help people to understand that being more mindful (through meditation) can benefit them so much that their brains are rewired in a good way.

So we now know meditation helps people in a very meaningful way. Its health benefits are tremendous. But these researchers have not been able to solve the biggest obstacle of making meditation something accessible to everyone, until now.

I reviewed a product called Inner Balance at my other site, Essence of Trading, focuses on its benefit on trading performance. This product is basically a portable heart rate monitor that connect to your cell phone through Bluetooth. What makes it special is that it can track your heart rate variability (HRV) in real-time giving the user instant feedback of their current state of calmness. Yep, you read this right. For the first time, there is a way for anyone who does not have access to a good trainer to learn the foundation of meditation, which is slowed down breathing, to finally learn the skill properly, quickly with much less frustration.

Heart Rate Variability (HRV) is a pretty good indicator of one’s calmness which was very difficult to measure before the discovery and deeper understanding of how our heart lung functions are affected by our mood swings. Maybe, in the future there will be even better measurement tools discovered along the way. But why wait if we already have something on hand that can help us now.

Anyone interested in getting Inner Balance can go to their site and check out the products offered there.

(Affiliate disclosure: I have signed up to become an affiliate after I gave out a whole bunch of this device as gifts and see the amazing results on my friends and family)

I will try not to repeat what I wrote in the review here. Anyone interested in that can read it later.

What I like to say here is that many traditional practices from our ancestors could be labelled as mystical but not all of them are bad. Once we start to understand more how they work, the mysticism dissolves, resulting in a more accurate view of what they really are. Meditation, now with enough scientific researches done on the subject, is shining through with real life practical use in medical treatments like reducing anxiety, lowering high blood pressure and improving performance from sports to trading. It is a real gift from our ancient past.

The Lack of Educational Resources for Traders in Hong Kong and Rest of Asia

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I wrapped up my trip to Asia on schedule earlier this week. I did not anticipated that though because there is always something coming up from this type of business trips that you have to extend it until everything is taken care of. Very nice that I get to take a break now going into New Year for much needed rest and relax before the hectic work schedule I planned for next year.

During my stay in Asia I squeezed time to check out various bookstores in every major city I went to. I was trying to find some trading books that are of decent quality to be recommended to my Asian readers. And if possible, I could just buy a whole stack and give them out as holiday gifts. Sadly, I could not find one book that really meet my expectations. It is quite disappointing given last year I learned about the financial scams still rampaging in these countries.

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In many of these bookstores, there is really just one or two columns of books on investments. And trading, being a sub-category of investment, has probably one to two rows of books. These books on trading are mainly translated from books originally written in English. My not so in-depth attempt to browse through some of these books leaves me with a pretty bad impression as I have read the originals and I am quite sure the translated versions of these books are not delivering the correct message to the readers.

Another very interesting phenomenon is that Warren Buffett is over represented in every bookstore I visited. First, if you are a normal person, you should not invest like Warren Buffett. I am willing to go all the way to say that if you are not Warren Buffett, you should never invest like him. It is a very sensitive topic which deserves a complete article written on just this issue alone. I guess I have to do that in the future so that I do not need to answer this same question again and again.

There are rows and rows of books, both translated and originally written ones, on Warren Buffett’s “investment secrets” and “financial wisdoms”. This is classic cult following mentality where these books are there to attract casual readers to buy them on impulse. They do not provide any real value to the readers yet I know they must be selling very well because there are multiple copies of these books on the shelf while other books you see only one copy there most of the time.

I can see the huge potential of trading / investing education market in Asia. Only by lifting the overall standard in investors sophistication in the region will eliminate the continuous scamming activities there. Better education for traders will also reduce the number of tragedies related to gambling in the financial markets that I see dominating the retail trading scene in Asia.

Casualty of Going Cashless: Empty Donation Boxes at the Cashier Counters

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I do not usually go to fast food joints or coffee shops. If possible I always prefer brewing my own coffee and cooking my own meals. Doing this for years not just because of the health factor but also for the sake of avoiding long line ups. During my trip going from Canada to Hong Kong, however, I spent some time strolling in the airports while waiting for all kinds of things. I found a very interesting but sad phenomenon has emerged.

Those donation boxes that sit at the front of these cashier counters at McDonald’s, Starbucks, Tim Horton, etc. are all pretty much empty.

I actually popped the question to a few cashiers to see if my observation is correct.

Well, it turns out, the little amount of coins in many of these donation boxes were the collection for over a week.

My casual observations tell me that eight to nine people out of ten lining up at Subway used credit card, bank card and even cell phone to pay for their food. I actually counted the numbers while waiting for my flight. That’s about 50 people over a 45 minute sampling. The remaining ones who paid with cash have not put their changes into the donation box.

Well, Canada chose to do away with its pennies (1 cent coins) probably contributed to the problem too.

I wonder what the charitable organizations can do to counter this situation.

Time to Slack Off 2017

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As a follow up to my Time to Slack Off series, I like to report my results and what I think going forward I will do with my trading. Many doors opened this year for which I am very grateful for and that I get to try out different ideas in such a short period of time is both exciting and exhausting. It is time for me to reflect and plan for the coming year.

Transformation of My Trading

I have achieved my trading goal for myself and for my clients as a money manager back in early October already. Due to serious pile up of all kinds of tasks, I did not get the time to write about it until now. This year is fundamentally different from the years of trading I have done due to the drastic changes of my trading goals and the new responsibility of managing a completely different kind of funds.

Many readers who follow me for years know that I used to trade through the complete US market open hours. I did take breaks during lunch but I tended to squeeze as much profit from the market as possible back then. Last two years my personal trading goals have changed to a more moderate approach for which I am driving for consistent returns with much reduced stress and effort. That took a lot of work outside of trading to further improve my mechanical trading models. More importantly, I came up with an even better trading framework for handling the current trading environment.

Hence I spent a lot less time in front of the screen and more time outside of it. I now usually sit at the screen to watch the open but I can choose not to because my mechanical models would take care of the orders anyway. Even though I have open positions by 11 am (Eastern Time) I can walk away since the positions are managed automatically. In my opinion, the performance is actually better based on the relatively shorter amount of time spent in front of the screen.

My Experiment on Running a Different Type of Fund

Last year I started to manage in a small scale funds that demand stable return in low-teens percentage with a time window of 3 years (or more) of lock-in period. As oppose to classic fundamental based fund managers who bet on fairy-tale information, or those big swingers with so-called macro view that ignores the market dynamics, my approach is to day trade with mechanical strategies that I know are rock solid concepts working consistently over the past 20 years. By controlling the leverage, I make it possible to produce consistent returns without the so-called volatility swings with those funds that have overnight risk. It is a great idea that worked out very well.

In comparison, the responsibility as a money manager managing client accounts, my objective is often maximizing the return with risk precisely defined. I can assure you that it is not an easy task. Although I have been doing my part for years, it is still challenging as the financial markets evolve rapidly.

The Birth of a Private Fund

Inevitably, after the success of the experiment, I am being asked to reconsider my position to run a fund among close friends and families. It is not even going to be the size of a tiny hedge fund. It is just money that a few close friends can spare for speculation purpose (something I called burnable). Since I am so restrictive on the amount of money they should put into the pool relative to what they have and that I am imposing the same 3 to 5 years lock-in period, I am glad that they choose to keep their individual commitment small. Now that the word is out, I have requests from friends everywhere asking me to do the the same.

This is, kind of, completely deviating from my original plan. My original intention was to run this private fund with just my own money and possibly some from my partner. Once the first year return is booked, I will try to convert the individual accounts that I manage for my long term clients into the same pool so that I can streamline the whole operation. That is a longshot though, because my clients really dislike publicity of any kind. Still, I hope to convert them to believe in my new hands off approach.

Anyhow, I planned to launch this no later than February next year. Just the explanation of the risk involved in my kind of trading can take hours to each individual interested in this. It will keep me very busy until then.

Mix and Match of Trading Signals

So what does all these developments have to do with daytradingbias.com? After all I tagged this post with it.

Well, part of the trading models I developed for my private fund will also be made available at daytradingbias.com thru real-time trading assistant and other means. I have looked into many other ways to delivery the signals. The viable ones will be added one by one.

For those interested in managing their own accounts with a subset of signals picked from the set, documentation / a complete course will be made available so that they can adapt the strategies to create a trading plan that fits their risk tolerance. This is what I am planning so far but I do not know if the plan will change again down the road.

On the Road Again

I am heading to Asia as mentioned in my post back in October coming weekend. Once I have internet access there I will continue to post. I will get the chance to meet with many people from the financial industry there. If anything interesting comes up, I will definitely write about them.

 

Past Time to Slack Off Posts

Time to Slack Off 2014

Time to Slack Off 2013

Time to Slack Off 2012

The Single Most Effective Way to Weight Loss

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I have seen so many people having this problem with overweight that I always wonder why they are having such a hard time in cutting down the fat from their bodies. There are even TV shows with people signing up there to be coached by nutritionist, exercise coach, etc. to drop their weight to a healthier level. It is amusing to see such phenomenon happening in China as well with their younger generation showing exactly the same type of obesity issues. Seriously, in my not so humble opinion, all these fancy diets and exercise regimes we see out there are not really attacking the problem directly, hence the difficulty in getting the overweight crowd back in shape.

Disclaimer: I am not a healthcare professional. What I write here is my personal opinion. Seek medical advice from your doctor if you plan to do anything affecting your health.

What’s Underneath the Overweight Symptom Matters

For some people their overweight issue is actually a medical condition like hypothyroidism. If the underlying medical condition is not treated, doing all kinds of healthy routines will not get the person far. The worst part is that the process of such healthy regimes also destroy the person’s determination over time as the ineffectiveness is usually blamed on the person as oppose to the experts who are offering the advices.

Once the medical condition is put under control, or that you are relatively healthy in the first place, the next step is easy. It helps to do exercise but not everyone can afford to do that due to various reasons. The way to weight loss is always eating less food. To be specific, eating less food that induces weight gain and bloating is the key to control our weight. The concept is so simple but it is very hard to do if you listen to the weight loss meme out there. After all, controlling our craving is hard.

Really?

Trick Your Brain with Healthy Filler

It is well known that in any weight loss regime, using some type of filler food is always the key component. When people are eating junk food, they put excessive fat, sugar and carbohydrates into their bodies. Healthy fillers like broccoli and cauliflower when cooked without sauce or a lot of seasoning can keep us feeling full. Hence eating them as replacement to potato chips, fries, noodles, rice and pasta of course will drop your weight fast.

The goal with eating filler food is to get your body used to a lower calorie diet without giving yourself a hard time feeling very hungry. Once your body has reduced weight, it will automatically demand lower calories as a result. In other words, using filler food is to trick our brain to stop craving for food.

But there is a problem with these healthier alternatives. They just take too much time to prepare. They are also unhealthy when prepared in advance. Fast food and microwave meals exist for a reason. They are way more convenience when you feel hungry and need a fix quickly.

If there is a healthy filler that does not require so much work, everyone can enjoy a healthier life.

Is there anything like that out there?

Yes!

The Cheapest Solution to Weight Loss

I like to introduce you to konjac noodles, your new best friend in weight control.

The root of the konjac plant is used to make this bouncy tasteless noodle in many countries in Asia. The Japanese name for the konjac jelly is Konnyaku. The noodle is also known as shirataki noodles. They are transparent in color. The noodles are just shredded version of the jelly blocks.

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You can buy these noodles from Asia supermarkets at very low price. Interestingly, Asians mainly eat this food in their hotpots which is one of the most unhealthy way to consume food.

These instantly edible noodles have several very interesting properties. First, they are extremely low in calories, making them a good candidate as a filler food. At less than 10 calories per 100 gram of konnyaku noodles, you cannot get any food doing the same.

Second, this noodle contains no sugar, sodium (salt) and fat. This property tells you that the konnyaku noodle is an acceptable filler.

Third, this noodle has about 2% fibre and 1% protein by weight. With the healthy nutrients, you know they are healthy filler.

If it is so good for weight control, why is no one talking about it?

Actually, the weight loss industry and the health food industry know about this for a long time. The weight loss industry has been selling supplement tablets mixed with konjac powder for decades. The health food industry also catches up with organic konjac powder to mix with your own cooking.

But they are not going to tell you the best way to really benefit from eating konjac is to get the instant version at a low price.

There is Always a Catch

Even if someone learned about Konjac and ventured to buy whole bunch of these konnyaku noodles hoping to start their weight loss regime, that person will likely drop the idea after opening the first package. That’s the catch.

Konjac products themselves are odourless just like any other jelly making ingredients. The original konjac powder, however, when being used in the cooking process, produces a smell that is not very pleasant. It is consistent with other jelly making ingredients too.

But for a normal person who has never experienced that, you can imagine what the person thinks when they first open a package of konnyaku noodle. Many people simply assume the food went foul. When they open up the second package, they will probably give up the whole idea.

To pre-process the konnyaku noodle, you just need to rinse the noodle in water for several minutes. You can also just rinse it once and then leave them in water for several minutes. The smell from the konjac water will be completely removed. You can either eat the noodle right after because it is fully cooked. You can also store the noodle in the refrigerator for a week.

Hence, if you hate the smell, pre-made a whole batch of konnyaku noodle in the frig so that you can use it anytime you want to eat.

Just in case you cannot get the straight up noodles and instead getting what you see below, don’t panic.

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This is a fancy version of the konnyaku noodle. They are small bunch of noodles tied in an open knot that you can easily untie. They are made this way for people putting them into hotpots.

Eat It Anyway You Like

There are many ways to enjoy konjac noodle. Simplest way is to eat it cold with a little bit of soya sauce, cold noodle sauce or fish broth. That’s very traditional Japanese style.

Another traditional way to eat konnyaku noodle is mix it into seaweed salad.

In many Asian countries, they throw the konnyau noodle into their hotpots.

Unlike pasta or rice, the konnyaku noodles do not absorb flavour very well. You see everywhere on the internet said it does but that is not true. It is just another misinformation spread by the internet copycats. To make the noodles absorbing just a little of the flavour, it takes several hours of soaking in the sauce or broth. An alternative solution is, of course, to thicken the sauce but that also means you are eating a lot more calories as a result.

Another difference between konnyaku noodles and pasta is that pasta are chewy and soft while konnyaku noodles are bouncy. For some people this difference in texture can take some time to get used to. If you can stopping thinking of konnyaku noodles being a replacement of your pasta and accept it as it is, you will adapt to the experience much more quickly.

For diet purpose, you can use it to replace your pasta or your bowl of rice in your regular meal. You can also prepare the noodle in a light sauce or salad dressing so that you can snack on it instead of your usual unhealthy snacks or expensive diet snacks.

Healthier Life Can Be Easy

The beauty of using konnyaku noodle is that there is really no change to your overall eating habit. Just replace everything you are eating that is unhealthy with the noodle will do the job. And the preparation time and effort is next to none. Once your weight is dropping, your body will make the adjustment necessary for you. i.e. you will likely crave for less food.

Now you know the secret to weight loss and it is not something difficult to do. Take control of your weight today!

p.s. I have recommended this to many people and have seen great results from them all. There is really no point for me to repeat myself again and again. Hence writing this piece to save myself the trouble.

Busy Schedule Ahead

It has been weeks of chaos so far in the development front on deploying my trading models. Unforeseen troubles in live trading of the models forced us to twist our code to handle all kinds of issues like sudden disconnect from brokerage server. Unlike co-location server based solutions, we have now proven retail level client side automation has many issues that cannot be taken care of easily.

Nonetheless, I am still going to push forward with these projects to see how much we can accomplish. In the meantime, I am busy writing up the documentation / instructions on trading these strategies effectively.

While all these things are happening, coming two weeks we are setting up a new remote data centre. This is not our first attempt though. Some of the premium members may remember that the first try was a complete disaster. Once the remote data centre is up and running, I will phase out the current one in Toronto.

Adding to all that, I am also going to hit the road again later this year due to an interesting development that I may work on a special project involving a number of trading firms and financial institutions in Asia. I am not sure what my exact travel plan will be at this point. For those of you in Asia, I will get in touch.

Have a nice weekend all!

Steve Maxwell: How to Exercise

This is a clip from a long interview of Steve Maxwell at the YouTube channel London Real. As an expert in training all kinds of athletes, his wisdom on exercise is very interesting. I agree with him that we should not over do exercise if our goal is to stay fit only.

You can find more video on Steve Maxwell online.