Global Macro Trading Journal

tsznecki said:
One of the best and recent advice I was given by a very well informed and large player on internationalization was this: governments across the world are closing down on loopholes and grey areas. One can get away with it in the short term because not all jurisdictions are onboard and on differing terms, but the clear trend is that way.

The long term solution is you will be need to be based out of a low tax jurisdiction physically, or pay up for your current locale to be completely onside with regulations. Good luck.
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I tend to agree with that. Corona has made Debt to GDP ratios and deficits are so absurd that they will crack down hard on law tax jurisdictions and perhaps this recent banking changes are the start of that.
However, moving out of my country is completely off the table for me, my family is here, my gf is here and the more I travel internationally the more I realize that Brazil is the only place I can live. Other countries are fun for a few weeks but after a while I just want the friendliness of my people, money is nice but at the end of the day I want to be happy

So my decision is between a low tax but compliant place like HK or a low tax fuck you place like the BVI (Singapore seems off the table, at least looking at the costs of audits and stuff). But its tough because there is this new regime in HK and now they are pretty much the same as China to the US. So maybe dont the road as Cold War 2 progresses there might be some investment restrictions put in place in HK and vice-versa. That would pretty much eliminate any purpose for me as I mostly buy US assets (stocks, etfs, etc)
So I dont know what I will do. HK is tough because the accounting cost is tied to the number of transactions, so if I trade actively again I will be doing thousands of transactions a year, maybe more than 10K. I suspect the accounting bill would be huge.
 
dropbox.com/sh/bkvnxsr7u27twgu/AADotAPPZpfUWZZdC4dNnxxra/David%20Capital%20Partners%20Q2%202020.pdf?dl=0

An interesting HF letter talking about herd immunity
 
Interesting comment by Soros
"
Q) What made you so successful in the financial markets?

A) As I mentioned before, I have developed a conceptual framework that gave me an advantage. It is about the complex relationship between thinking and reality, but I have used the market as a testing ground for the validity of my theory. I can sum it up in two simple propositions. One is that in situations that have thinking participants the participants’ view of the world is always incomplete and distorted. That is fallibility. The other is that these distorted views can influence the situation to which they relate and distorted views lead to inappropriate actions. That is reflexivity. This theory gave me a leg up, but now that my “Alchemy of Finance” is practically compulsory reading for professional market participants I have lost my advantage. Recognizing this, I am now no longer a market participant."
 
Daal said:
Interesting comment by Soros
"
Q) What made you so successful in the financial markets?

A) As I mentioned before, I have developed a conceptual framework that gave me an advantage. It is about the complex relationship between thinking and reality, but I have used the market as a testing ground for the validity of my theory. I can sum it up in two simple propositions. One is that in situations that have thinking participants the participants’ view of the world is always incomplete and distorted. That is fallibility. The other is that these distorted views can influence the situation to which they relate and distorted views lead to inappropriate actions. That is reflexivity. This theory gave me a leg up, but now that my “Alchemy of Finance” is practically compulsory reading for professional market participants I have lost my advantage. Recognizing this, I am now no longer a market participant."
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It's a strange statement. It's like a tennis champion from the 1980s claiming to have lost his edge because he wrote a book about playing tennis.

Reflexivity is alive and well, just look at the massive bull run in US bonds from the 2018 lows - when the market wrongly believed rates were only headed higher, and just 2 years later believes they will never again rise off the ZLB.
 
tsznecki said:
One of the best and recent advice I was given by a very well informed and large player on internationalization was this: governments across the world are closing down on loopholes and grey areas. One can get away with it in the short term because not all jurisdictions are onboard and on differing terms, but the clear trend is that way.

The long term solution is you will be need to be based out of a low tax jurisdiction physically, or pay up for your current locale to be completely onside with regulations. Good luck.
More...

It s been going south for a few years now, it will be probably difficult to open a corporate account at a decent bank for a BVI company. In HK it s even difficult to open for a local HK company.
I ve spent quite a bit of time closing offshore corporate accounts over the last few years, sometimes forcibly, and wouldn't go that way now . Singapore, which has efficient but rather expensive bank services, used to be easier than HK a couple of years ago but not sure how it is now. Reading in UAE it s difficult to open accounts even for free trade companies, let alone UAE offshore companies. Many getting forcibly closed. Read plenty of horror stories abt carribean and the baltic states. Some forums are specialized into offshore banking and last I checked the options were very grim.
Good luck Daal, but small corporation offshore banking has become way more dificult over the last decade.
I d be careful not to have a single bank account for ur corporation btw, several banks closed accounts while only allowing to transfer the funds out to a same name account.

"Thank you, please don't come back to our country" is what I was told half jokingly by a banker in Taipei after closing an account there ( had to fly to Taiwan with a bunch of documents to be able to wire out the remaining funds) and it sums up my experience over the last few years. Personal accounts are a little better, although I'd forget Taiwan for those as well.
 
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Btw abt BVI and IB, a few years ago after closing online an account for a BVI company which had HK as a place of business, I tried to reopen online the account as advised by one of IB's rep to sort out a minor wire issue and the system asked me some documents related to the HK place of business and I think its tax relationship with HK which were problematic to provide. It was a requirement that didn t exist when I first opened that account.
I just gave up the reopening process as it wasn t important but u might go through the whole company and bank set up to face a similar issue.
Bvi has had a better rep than Belize for a long time btw, but BVI is also a problem now
 
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Tks for the comments. A bank account might not be necessary for me, I have asked IB and another US broker in the past about making wires from corporate brokerage accounts to bank or brokerage accounts for different entities but with the SAME NAME(and same beneficial owner). They all told me it was fine, and I made them over the years. Worst case, I will use my current corporate bank account to receive IB wires even though they will be for different entities (but with the same name). But I suspect my bank will allow me to open an account for the new entity as well. I have been a good client for them for 5 years, so I think they will comply and open it.

My problem so far has been KYC at opening the BVI company, it used to be that you clicked a few buttons online and all of the sudden a brand new company was opened. Now they are asking for all kinds of documents, which I'm providing but I wouldn't be surprised if they just messaged me 'sorry, but you didn't make it'.

I have had so many problems over the years proving that I made my money trading/investing. I thought by leaving poker/online gambling that problem would go away but compliance departments are run by idiots, who can't fathom that someone could make money in stocks. As a result, they think you are guilty and you have to prove your innoncence
 
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A while back I tried to make a transfer from outside Brazil to Brazil via a regulated Brazil forex house. I literally provided almost every single brokerage statement I ever had (I have them since 2008), everything they asked for, I provided. It was all there, all the proof of my income and source of funds. But the morons then said those statements had to be audited. From what I have seen with regards to Singapore and HK accounting costs, the costs for an audit are based on the volume of transactions (and perhaps louisHK can confirm). As a short-term trader, my volume of transactions were enormous. The cost would probably be higher than my entire networth, or at least half of it. So they basically said, lose all your money or we can't complete the wire. Its pathetic
 
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