LORD COPPER: Analysis that breaks down trader data to nano-level

It is an immutable fact of the market that the more you know, the better informed your trading decisions should be, Lord Copper argues as he peeks at the emerging research into the context of trades.

Information is the life-blood of commodity markets. Strip out all the mechanical operations – back-to-back pricing, averaging, and so on – that make up a lot of regular day-to-day market volume, and what is left in the various trading books of the players is their decision as to whether they want to be long, short or square. Whether a trade participant, an investor or a straight out-and-out speculator, that’s what it comes down to. Guiding that decision is the information that they are able to glean about the state of the market; plus, of course, their own interpretation of that information. It was so for Rudolf Wolff in the 19th century just as it is for XYZ Hedge Fund in the 21st. But although that need and thirst for information hasn’t changed, the nature of what is available has – significantly. Think about it; back in the dim and distant...


Lord Copper

July 18, 2016

07:00 GMT