EFTA02343903.pdf

From: Vincenzo lozzo Sent: Sunday, August 17, 2014 2:21 PM To: jeffrey E. Subject: Re: Taxes Sorry for the email flood but one inte=esting side effect of a public digital currency is that your trading strate=y can be 'anomaly detection on executives spending habits' - which is an ar=itrage as long as you know more identities (wallets) than anybody else play=ng the same game Sent from my (phone =br>On 17/ago/2014, at 09:09, "jeffrey E." <[email protected] <mailtojeevacation=gmail.com» wrote: risk tolerance, can be accomplished by der=vatices. , arbitraged for mis pricing, risk is never really red=ced without a corresponding reward adjustment, howevr, tax allo=s certain arbitrage, for ex gains at 20 -losses at 30 Percent .=nbsp; review monte carlo simulations, need resource , bank, fri=tion charges. read fooled by randomness. On Sun, A=g 17, 2014 at 9:02 AM, Vincenzo lozzo w=ote: Can you let me know if y=u are? I'd be helpful if we can meet up - I'm trying to look at derivatives=through my lens. What is somewhat striking is that it seems like all they=are is a programming language whose goal is to minimize risks (with the sid= effect of creating arbitrage and speculation opportunities). What I am is if you interpret trading as an optimization=problem of: given a belief(stock X will outperform the market, etc etc) max=mize returns and minimize risks. Then all derivatives are is 'functions' to=go from a risky bet to a less risky one - now you can go to riskier ones bu= that's an 'anomaly' Anyhow if this parallel somehow holds there are interest=ng questions that come up, for example: what is a Turing machine in this wo=ld? Which would be a fancy way to answer the questions: what derivatives ar= missing? Also since you can stack up multiple 'functions' (eg: combine a f=rward with an interest float-to-fixed swap to make a riskless arbitrage) th=t leads to complexity and hence to bugs But I'm not sure if this is me going insane/trying to fo=cefully fit one thing into the other or if there's actually something there=/div> One of the reason why meeting up would be useful :=) Sent from my (phone EFTA_R1_01312441 EFTA02343903  On 17/ago/2014, at=08:47, "Jeffrey E." <[email protected] <mailto:[email protected]» wrote: [email protected]&g=; wrote: taxes are variable friciton On Sat, Aug 16, 2014 at 4:36 PM, Vincenzo lozzo wrote: So quick question for you: are taxes a trick?<=r> Here's what I mean, I think (gut feeling - no proof) that there are potentia=ly a number of arbitrage/risk-free opportunities that are not tackled by an=body because when you add in taxes you don't actually make money. Is 'hacking' taxes a strategy? It seems like all the academic texts leave th=t part for the reader which makes me think there's something there. Also I was reading a while ago that rentech was using a weird structure with=Credit Suisse (iirc) where they were taxed on their profits as if it w=s long-term capital gains instead of short-term. Sent from my (phone &=bsp; please note The information cont=ined in this communication is confidential, may be attorney-client privi=eged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, d=sclosure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communicat=on in error, please notify us immediately by return e-mail or by e-mail to [email protected] <[email protected]> , and destroy this communication an= all copies thereof, including all attachments. copyright -all rights re=erved 2 EFTA_R1_01312442 EFTA02343904  please note =div>The information contained in this communication is confidential, may=be attorney-client privileged, may constitute inside information, and is intended only for the use of the ad=ressee. It is the property of JEE Unauthorized use, disclosure or cop=ing of this communication or any part thereof is strictly prohibited = and may be unlawful. If you have received this communication in error, pl=ase notify us immediately by return e-mail or by e-mail to [email protected], and=br> destroy this communication and all copies thereof, including all attachme=ts. copyright -all rights reserved please note =div>The information contained in this communication is confidential, may=be attorney-client privileged, may constitute inside information, and is intended only for the use of the ad=ressee. It is the property of JEE Unauthorized use, disclosure or cop=ing of this communication or any part thereof is strictly prohibited =and may be unlawful. If you have received this communication in error, pl=ase notify us immediately by return e-mail or by e-mail to [email protected], and=br> destroy this communication and all copies thereof, including all attachme=ts. copyright -all rights reserved 3 EFTA_R1_01312443 EFTA02343905