Uluwatu, from Jim Sogi

June 1, 2009 |

 Uluwatu Bali is perhaps the top surf spot in the world set in a wonderful friendly culture. The reef sits at the base of a large cliff. A steep winding path leads down to the water to an underwater cave where the surfer paddles out through the cave over the sharp reef to the line up. The surf area is 1k long where long winding 2-3 meter high waves traveling from Antarctica across the Indian ocean speed down the reef. There are crowds with 100 surfers in the water from all around the world with 10 or more languages spoken. There are many very very beautiful women from Europe, Japan, China, Indo, Malaysia, US. The locals are very friendly and kind and are always looking to sell stuff to the surfers that stream there. There are certain spots in the line up where the waves allow an entry and are best formed. Time of day is extremely important as the 3 meter tides can leave the reef dry and dangerous.

Surfing has always given inspiration for trading. The least crowded spot today was at the edge of the line up. Large waves that had by passed the rest of the reef formed up nicely where the crowd was sparser. The crowd stayed in the middle of the line up where the waves weren't lined up as well as on the edges. A similar effect occurs trading where the lowest volume occurs at the edges and can provide the best venues for entry. Larger volumes appear in the centers and are not very good trading areas. Time of day is also important in markets. Similar to surfing market waves form spots where the market forms up and makes entry easier with less risk. Locals are always trying to sell you stuff as you wait for the line up to form just right. Many times its best to just say no thanks, maybe later and wait for your spot. One of the tips for surfing Uluwatu from the locals is just wait for the wave to come to you. When the forces form just right where you are, then its a go. Same with a trade, you want your order to be in just the right spot and wait for the market to come to you. Another thing is there are a lot of kooks out there, from Europe or wherever and are not used to the powerful waves, so sometimes you can use that to your advantage to get a nice wave. Same in markets. There are some kooks out there in the markets doing some silly things and its good to take advantage of that if possible.





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2 Comments so far

  1. Arturo Resio on June 1, 2009 1:54 pm

    I remember surfing in Bondi, when a fin was to be seen on the horizon. It was a slow day. Suddendly someone said something and everyone was out of the water. As I was far away from the shore, and by the time it was just rumour, I joined a group of three. Thought my odds were better that way in case it was true.
    Just a minute later, a dolphin sprang out of the water, making a nice curve on the air. The ones that stayed could see the show, the rest just noticed something.
    What would have happened if it was not a rumour?. I guess you should know the odds in advance, or you’ll play it always safe. If you don’t you just risk too much no matter how deep you’re in. It was fun but I know that time I was lucky.

  2. douglas roberts dimick on June 6, 2009 6:31 am

    Free Skiing

    I was "free skiing" this afternoon at Tradestation.com Forum. I came across a post with these four questions, posed, I gather from the context of the entry, by a relative beginner with trading and the site as well.

    When I was ski racing during my freshman year at university, UMF Coach Reynolds (assistant coach then on the US Ski Team) would emphasize free skiing… just go out and make turns, all kinds of turns in all kinds of conditions and in various circumstances. Up to then, during my academy years, I had focused on gates, running variations of slalom, GS, and downhill practice courses.

    Finding “the line” of a turn is elemental to this sport. Upon acquiring my A Status, my coach was really saying that it was now time to learn how to create deviants of lines. The greats of the sport do this with the appearance of defying physics or sanity – or both.

    And here is where free skiing comes into play. It begins by query… Hmm, what happens if I straighten the s-section and then pivot? Wonder if I drift low at the turn-in of this off-camber and then muscle my way up into the apex?

    So, without further ado… the TS post…

    “My question is philosophic:
    1) Is it theoretically possible to define a set of completely unique events so that trading transactions are correct?

    2) Do I need to define a huge set of events with every possible combination of the indicators included?

    3) Are the MAA, Fast, and Slow MAs "too" correlated to keep the number of events low?

    4) Is this state and event approach fundamentally flawed from a mathematical perspective?

    I am now carving up some TS Forum responses for posting here by the time we all get to the bottom of the hill on first impressions.



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