We continue to search for new traders to add to the AxiSelect incubation program run together with AxiTrader. As discussed in previous letters, traders with $1k in equity, a PsyQuation Score™ of 75 or more and a track record of 6 months or longer will automatically qualify for inclusion.
I am also very happy to report that Axitrader has won Investment Trends Australian Broker Best Overall Satisfaction category for both their commissions and trade execution.
Privacy and the Crypto
The past week was all about Cambridge Analytica’s abuse of Facebooks privacy rules to influence the way people behave towards certain events. Please allow me a little rant. To me it is quite laughable how the world is up in arms, including the government for that matter, over a company’s use of information to influence behaviour.
I am not for one minute condoning the behaviour of Cambridge Analytica because choice architects and influencers have a moral responsibility when wielding powerful influence over their subjects. However, this is a wonderful opportunity for me to get on my libertarian soap box and say; “hello”, we have all been under the influence of government and central banks propaganda machine to inflate the hell out of the debt problem that they helped create and worsen, where is the outrage to this blatant misuse of power. I am a little bit worked up right now so I will save my discussion on methodological subjectivism and a more detailed look at the subjective theory of value for another time.
With all this talk on privacy I thought I would share some interesting history of how we share private information by way of what is called a cipher. A cipher is a secret way of writing a code. Today we have very sophisticated ways of encrypting information so that we can hide sensitive information from certain people.
The most classic cipher used thousands of years ago was where the alphabet was substituted with different letters according to a pattern. For instance we can shift the alphabet by 3 places which will provide 25 distinct ciphers. But if we choose to rearrange the alphabet in any order then we can produce up to 400,000,000,000,000,000,000, 000,000 such rearrangements and ciphers. The one way to remember a substitution sequence is to come up with an easy to remember “key”, such as a sentence or two that defines the exact cipher key.
For 100’s of years the monoalphabetic substitution cipher remained the best most secure form of private message transmission until a noted Arab scholar al-Kindi cracked the code somewhere in the years 800 – 873 AD and became the worlds greatest Cryptographer.
The way he did it was by examining the frequency of a letter in a cipher text. In English the most common letter is e followed by t then a so if in the text being examined the most frequent letter was j then it could be assumed that this letter represented e and so on and so began the theory of frequency analysis.
With the understanding of frequency analysis as described above, you can gain a small insight as to how the PsyQuation Score™ works. The skill coefficient has been programmed with machine learning capability to do a frequency analysis of the most frequent attributes present in a winning trader.
The PsyQuation experience can therefore be best described as an attempt at unlocking the secrets of the great trading universe.
Looking forward to more profitable trading together.
The PsyQuation Team