Competitive Advantage in Investment Markets

Featuring Daniel Want

Daniel Want, CIO of Prerequisite Capital Management, presents a practical framework for gauging tactical market risk. Daniel explains how to interpret market participant behavior, in order to understand where the true balance of risk lies at any point in time. This knowledge and tools will arm you with the ability to navigate and time markets, to make better decisions on entry and exit points. Filmed on May 16, 2017, in Sydney.

Published on
25 May, 2017
Topic
Sentiment, Psychology, Positioning
Duration
68 minutes
Asset class
Equities, Commodities, Bonds/Rates/Credit, Currencies
Rating
37

Comments

  • Sv

    Sid v.

    17 8 2017 19:11

    0       0

    Thank you, i did find it interesting and useful.

  • AH

    Alan H.

    7 8 2017 22:57

    0       0

    OK, I see from Seth L.'s comment you were referring to "Committment of Traders". Hey world, verbal rules are no different from rules of writing: never user an acronym/abbreviation without defining it first up front. In all other respects, a wonderful and useful presentation, Daniel. Hope you visit RV again before too long. ; )

  • AH

    Alan H.

    7 8 2017 22:47

    0       0

    "Cut data"??

  • SL

    Seth L.

    5 7 2017 19:11

    1       0

    Truly amazing presentation. Was wondering if you can dive a little deeper into the flaws of CoT data (without revealing too much of your process)?

  • SB

    Stewart B.

    19 6 2017 20:47

    1       0

    Thanks Daniel. Great video. I've been treading a lot of the same ground recently. Thank you for sharing your thoughts. I'd love to see you back on Real Vision!

  • RA

    Ricardo A.

    14 6 2017 11:15

    0       3

    Content was top .. but too long & too tedious.

  • HK

    H K.

    6 6 2017 10:48

    0       0

    Great presentation, really enjoyed it - and as a long time subscriber to RV, I totally agree with Enrico's view below as well.
    One question if I may, Daniel:
    Considering the speculative / patient framework, how would passive flows be classified if you apply your framework to single stocks - as passive investing does not express views on intrinsic values of single stocks but only on the broad market, if at all.
    Hence, that would probably not be a patient money flow as a result I guess. Looking at the increasing % of shares held passive and trading activity due to passive for many pockets of the market (especially Mining stocks I guess), did you see changes/complexities there in your model due to the significant increase of passive and therefore maybe (simplification) decrease in the activity you can label 'patient'? Thanks a lot if you would have a high level answer for me. And again thanks for the insight into your process!

  • KC

    Klendathu C.

    2 6 2017 11:18

    2       0

    Loved this. By understanding the limits of our opponents we know where to focus our time and energy. A better understanding leads to better allocation of time and energy.

  • ca

    cyavash a.

    31 5 2017 13:34

    2       2

    Loved the presentation, but it's also available on Prerequisite's website. I don't really appreciate that it's available publicly b/c this is paid content. But defniitely found it interesting, thoughtful, and encouraging.

  • MM

    Michael M.

    28 5 2017 23:00

    0       0

    Really appreciate this presentation. I'm a complete amateur, but I feel I've landed on my feet here and find the openness of people like Daniel (obviously within the bounds of what he's comfortable to disclose) really inspirational and incredibly helpful. Also his (and others') presence here in the comments. Good onya cob!

  • DW

    Daniel W.

    27 5 2017 06:53

    5       0

    Thank you everyone for your kind words, glad you found it interesting.

  • SN

    Sean N.

    27 5 2017 04:50

    0       0

    Brilliant!

  • jh

    john h.

    26 5 2017 20:27

    4       0

    This is tremendous conceptual work and of itself but Daniel has really outdone himself in sprinkling enough clues throughout his presentation that any reasonably intelligent and curious person should be able to figure out how to do this on their own. Bravo and thanks for teaching us to fish instead of just handing us the fish! After many, many years, I finally "get" technical analysis in a way that makes sense to me. Thanks again!

  • HS

    Hubert S.

    26 5 2017 18:41

    3       0

    Hi Daniel,
    thanks for all.
    I found several books on John Boyd. What is the one to read in your opinion?

    Thanks!

  • CY

    C Y.

    26 5 2017 18:38

    1       0

    That bang was my mind being blown. Wow - this was amazing.

  • JM

    James M.

    26 5 2017 15:37

    6       0

    Great job mate! Fascinating approach and completely logical and well delivered. Inspiring to hear that you are self educated and didn't come from an academic or financial background. As a person who didn't finish high school and having just tried to study markets over the last 8 years from literature and all other resources, while crawling through all the misinformation and BS, I can totally relate and admire what you have achieved actually managing money. I found this to be exponentially encouraging. Cheers!

  • JD

    Jeremy D.

    26 5 2017 15:22

    4       0

    Amazing presentation Daniel. Great balance of conceptual discussion and historical perspective with practical real life examples. Without revealing too much technical detail about your process can you provide some general detail on how you bifurcate the "Patient" and the "Speculative" crowds?

  • GS

    Gordon S.

    26 5 2017 15:12

    2       0

    Thanks a lot for having taken the time to answer my last question! I have another question concerning your speculative vs patient money framework. While I am of course very keen to know what hides behind your algo, I would also be interested in what kind of data you feed it. You mentioned transaction data, so I would assume that in addition to using prices, you also use some kind of volume metric? Not sure what data stream exists out there, but I could imagine that this metric is also very difficult to measure? Since securities are traded on different exchanges / dark pools / OTC, adding arbitrageurs and HFT to the mix creates or even forces market participants to add a lot of noise to their transactions and as a result makes it very difficult or even impossible to aggregate to a useful number?

  • VK

    Viresh K.

    26 5 2017 13:18

    1       0

    Thanks Daniel, appreciate when managers provide their own process.

  • jm

    joeri m.

    26 5 2017 11:35

    4       0

    A different type of question: can someone tell me with which program you can make this type of wonderful charts? I've always wondered about that and would really like to know. Thank you very much.

  • GA

    Giedrius A.

    26 5 2017 09:49

    3       0

    Thank you Daniel and RV team, I would like to see more of your analysis and overview of the market in the future. Interesting and very useful concept.

  • T~

    Tshort63 ~.

    26 5 2017 04:51

    5       0

    Generous sharing of your learning and your framewaork. Thank You!

  • AC

    Andrew C.

    26 5 2017 04:27

    5       0

    Fantastic, Daniel, thanks! With brains like this out there, I am very worried about my competitive advantage, especially with the rise of passive investing. Your interview on Adventures in Finance was also amazing.

  • GS

    Gordon S.

    25 5 2017 23:13

    3       0

    Thanks a lot Daniel for this amazing in depth presentation of your developed tools and the insight in your way of thinking, very inspiring! I know your stand on derivatives, but since many RV guests have highlighted the benefits of price informations in options, I was wondering what part those play in your more general framework to understand markets?

  • YA

    Yaser A.

    25 5 2017 22:53

    1       0

    Great work. Thank you

  • PW

    Phil W.

    25 5 2017 20:44

    1       0

    Yes enjoyed it!

  • TS

    Tyler S.

    25 5 2017 20:01

    1       0

    brilliant, let me know if your looking for help with anything I'd love to work with you.

  • KP

    Kevin P.

    25 5 2017 18:53

    8       0

    Excellent! Daniel is definitely one of RV's top tier contributors.
    And as a retired Air Force guy, I have to say Daniel applying the OODA loop to finance is awesome!

  • PN

    Pedro N.

    25 5 2017 17:31

    4       0

    A lot to digest but agree 100% with his presentation. An absolute watch!

  • tW

    tgwtom W.

    25 5 2017 17:15

    6       0

    Thank you for such a generous presentation to your RV audience...as an aside, signed for your email newsletter, are you on or would you come to twitter🙏🏻

  • rr

    rlw r.

    25 5 2017 17:12

    2       0

    Daniel thank you. Really interesting approach and analysis, well articulated.

    Roc on RVTV

  • RM

    Richard M.

    25 5 2017 15:28

    3       0

    Wow - brilliant! This is what gives RVTV the absolute edge in the financial media arena - fantastic educational material unavailable anywhere else!!! Daniel Want has such an unconvential outlook and perspective that just blows me away by it's unusual threads of complexity yet underlying simplicity and evaluation. Thanks Daniel for sharing your insights and wisdom with us!

  • SJ

    Sophie J.

    25 5 2017 10:09

    15       0

    Daniel is one of my very favourite contributors. He's fantastic