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@PhyrexNi I understand. This trade is focused on the 31% premium reversion; the quality of the company is not important.

@PhyrexNi A 31% premium does indeed have room for growth This kind of cross-market spread trading strategy does have a high win rate.

@PhyrexNi The core premise of Ni Da's strategy is that SK will fall first before ADR will fall, but if the main stock does not follow, the high premium of ADR cannot be trapped.

@PhyrexNi This is really awesome, I admire Ni Da.

@PhyrexNi Are you profiting from the convergence of the premium between Korean stocks and US ADRs? The biggest mistake in arbitrage is entering based on gut feeling. Using price differences and premium rates as anchors provides more logical support than simply looking at charts. Just wondering, what's your position size? Is it a fixed percentage each time, or do you adjust it dynamically based on the premium?

@PhyrexNi I bet nobody's more adventurous than me 😰😷 I'm not shady, you'll see.

@PhyrexNi These types of transactions are essentially about the relative value between different listed entities of the same company, rather than simply being bearish on fundamentals. Besides the price difference, factors such as exchange rates, conversion mechanisms, trading hours, borrowing costs, and liquidity must also be considered; otherwise, the discount may persist for a long time.

@PhyrexNi I've also tried cross-market spread arbitrage. After setting up an automatic stop-loss, I don't need to constantly monitor the market overnight, otherwise it's easy to get flustered.

@PhyrexNi I bet nobody's more adventurous than me 🎈🙂 I'm not shameless, you'll see.

@PhyrexNi I bet nobody's having more fun than me 😂💐 I'm not being shady, just look!

@PhyrexNi I bet nobody's more adventurous than me 🎏🍊 I'm not shameless, just look!

@PhyrexNi The most valuable thing about your post isn't how high the premium is, but "if it goes against you twice, just cut your losses and run"—you've already specified what constitutes a misjudgment. I don't short sell, my circle of competence isn't there; but with long positions, I do the same thing: on the day I buy, I specify what number I'll admit I'm wrong if it appears. The only difference is the trigger—yours use the price difference, mine uses those numbers in the quarterly report.

@PhyrexNi I bet nobody's more adventurous than me 🐰🧧 I'm not shameless, you'll see.

@PhyrexNi Why can you only earn such a small price difference?

@PhyrexNi The simplest way is the best, teacher.

@PhyrexNi I bet nobody's more adventurous than me 🚜🎲 I'm not shady, you'll see.

@PhyrexNi I bet nobody's more adventurous than me 🌀😕 I'm not shameless, you'll see!