If I drink twice as many Heinekins on wider range days I have a bigger buzz on the narrower range days. I also discovered a guarantee to make 100% return. If I buy the Beer-in-a Can in a .05 cent deposit state and return the cans to Michigan for .10 I have doubled my money. Unfortunately I have to HEDGE the cost of oil in my new Equation to transport my CANS. I may try this live tonight. Any thoughts how I can hedge OIL-in-a CAN VS my Beer cans? PS: I will pay .025/can to pick up locally. PSS: I am willing to backtest Beer consumption. PSSS: If we drink Amstel Light on the wider range days we can keep carbs low without changing the integrity of the third Equation.
Ebo, Thank you for the considerable thought and time you put into your post. (I liked the one about backtesting beer consumption) Michael B.
I think that one has already been tried by Newman and Kramer. As I recall, it didn't work out too well.
They used a mail truck! I am serious. If you incorporate the trend and Hedge Spot OIL vs July, you have a perfect BEER/OIL arb. The Beer will always yield .10 in MI. You just have to stay on top of your gasoline consumption VS. the Futures. I just need a few people to help me backtest. I can not possibly do it alone. PS: There tends to be a beer drinking cycle. PSS: We may be able to utilize a "WAVE" pattern of drinking. PSS: I am going for a swim in the Ocean.
Well, You could move to a border town on your quest to backtest. Michael B. Headline reads: Day trader with an edge is arrested for trash digging in the evenings. Finally the "trader from the gulch" is caught!