Road to 100 USD Via Finance

This is a beginning of my journey towards making 100 USD from finance.

I have around 6 years of experience in linux and software engineering. I am currently a cybersecurity engineer for a crypto trading company, I don't earn much, I think they are exploiting me, nevertheless I have a job, that's all I want to say, and some solid programming skills.

What I am going to concentrate on specifically is quantitative security analysis. Making money by detecting fraud in securities.

I am gonna start simple, with stocks. And from there we will see.

I will be in your care y'all, throw me in ideas so I don't fucking fail, and if you detect some crap, please call it out. I am 21 and 7 failed business under my belt is some interesting thing to have, not exactly that I wanted to accumulate that many.

Les go.

Everytime I make some good progress I will post this picture. Gigachad level stuff.

twitter, sec filings, and alt-data are gold if scraped right. sounds like an interesting journey. goodluck

Killswitchs said:

twitter, sec filings, and alt-data are gold if scraped right. sounds like an interesting journey. goodluck

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Hell yeah. Will hope for your support brody.

thekhair said:

This is a beginning of my journey towards making 100 USD from finance.

I have around 6 years of experience in linux and software engineering. I am currently a cybersecurity engineer for a crypto trading company, I don't earn much, I think they are exploiting me, nevertheless I have a job, that's all I want to say, and some solid programming skills.

What I am going to concentrate on specifically is quantitative security analysis. Making money by detecting fraud in securities.

I am gonna start simple, with stocks. And from there we will see.

I will be in your care y'all, throw me in ideas so I don't fucking fail, and if you detect some crap, please call it out. I am 21 and 7 failed business under my belt is some interesting thing to have, not exactly that I wanted to accumulate that many.

Les go.

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I wish you success in your story, of course it will not be easy but the most important thing is to never give up.

jern22 said:

I wish you success in your story, of course it will not be easy but the most important thing is to never give up.

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Thanks man. Gotta do it, gotta do it today.

All the best.

savitri said:

All the best.

Click to expand...

Les go. We doing it man.

Day 1:
Practically, I am searching for something that is not going to be pure code. Or pure math. I am good at those and can do them, but it's in a way that I brush my teeth, I do it because it's just good for you.

What I am diving into right now is market microstructure, C++ coding, machine learning math. As well as after effects for video production. Don't worry I don't do much of each, around 5-10 min daily. That comes up to be 40-50 min total daily. Not even an hour, an investment in knowledge that compounds with time in my eyes.

That is why I am searching for this intersection between things. Cybersec, math, programming, finance, art. And I think an intersection like that could be financial cybersecurity.

While traditional banking is a truly solid choice, those are institutions we are talking about. All of it is rather slow and they have established players and people they know they would rather work with. Meaning you got to have some solid personal starter budget in millions. I know sound bs, but it just appears to be that way. I am a solo founder and it's not really something that would go in stride with me.

In finance itself there are two ways to make money:
1. Long term investment, in other words long term market
2. Trading or short term market.

Long term market scales really well, but the problem with it is that you don't make money with it unless you have leverage. By leverage I mean huge globs of money, billions of USD. That's how Worren Buffet makes money, on average his annual return is around 19.9%, doesn't sound super impressive, but if you do that annually, it compounds.
There is a formula:
ΔP=μΔt+σϵΔt
All it means is that drift or expected return per period of time + random shock or all the rumours or information and human factor about the stock. Drift accumulates over time, otherwise it's much smaller than random shock. Meaning to invest well, you have to invest for periods longer than 8-10 years for the drift to even break even with the random shock. The longer you plan for the better, because the markets become more and more predictable and less random.

Trading or short term, this is where it changes a bit, there are only and exclusively the following ways to make money via short term market:
1. Market manipulation, illegal as hell.
2. Market inefficiencies, that's how Jane Street, Citadel and Medalion fund make money. And it is possible that they manipulate markets and do insider trading.
3. Superior intelligence. Insider information or just knowing something ahead of someone falls under this category.

That's it, there are no other ways.

What I am trying to do is take point 1, 2, 3 and detect bullshit happening.

One thing, when it comes to securities or traditional securities, fraud detection cannot be done by anyone but the exchange or the operator themselves. As an example, stocks, order book doesn't show much information at all. And this is the case for all of the securities. And by securities here I mean something that can be digitally written and sold back and forth in seconds. Bonds, stocks, forex and other things fall under this definition.

Now, we have a complete opposite of that when it comes to crypto. Due to blockchain every single transaction is kept and public for market participants to see.

That is why, I am going to concentrate on crypto assets as we go and completely ignore traditional securities.

Which leads me to a next point, given my constraint that I am not rich (excludes investing), if I want to create something, these are the things that I can do:
1. A business around exploiting market inefficiencies
2. A business around the superior intelligence or information that is related to traditional or crypto securities.
3. Market manipulation but in reverse, fraud detection. But as I have mentioned before, this only goes with crypto.
What I am doing right now is the number 3. Other prospects are there for my explorations later on, if need be.

This is the state of things today.

Quote of the day:
"The stock market is a device for transferring money from the impatient to the patient"
Warren Buffett

Given that the fraud detection can only be done in Crypto in my case scenario.

These are all the ways to go into and offer products:
1. Wallet risk scoring
2. Transaction monitoring
3. Token reputation and risk

These are the ways to sell it:
1. API-as-a-service
2. Dashboard/Web app
3. Discord or telegram bot (monthly fee for access)
4. Browser extension
5. Crypto Compliance Reports (activity, anomalies, AML, patterns of market abuse, etc.)

Audience overall:

We going with 1 and 1.

Wallet risk scoring and APIs as service.

Customers for a wallet risk analysis API are likely the following groups:
1. Compliance firms (They need scalable tools to meet regulatory standards (AML, FATF, etc.))
2. Centralized Exchanges (CEXs) (Regulatory pressure, internal security, license retention)
3. DeFI protocols (To preserve protocol integrity and protect reputation)

Let's screen the competitors:

elliptic.co, shitty interface, okay at times, but they have APIs and a dashboard. Documentation is meh. You can't register with them normally either, must be expensive.

chainalysis, big ass motherfucker. You can't even register normally with them. Must be expensive as hell. Interface seems decent, docs are bad, a heap of unreadable text with poor typography.

CipherTrace, no registration, might be a consultancy of sorts. Bootstrap looking website.

TRM Labs, no registration, claim some impressive things. I call bs. Must be expensive. Interface is mid.

Crystal Blockchain, no registration, must be expensive. Interface is mid. No docs.

Scorechain, no registration, must be expensive. Interface is mid. No docs.

Anchain.ai, no registration, must be expensive. Interface is mid. No docs.

All of them must be expensive and don't focus on doing one thing really well, they are really broad in the spectrum of services they offer. Going to their website, nothing is clear regarding the pricing, what services do they really offer? they usually have some broad term as a headline, "Chain analysis" or something of sorts. And this stupid annoying button "Book a call". Fuck you, I ain't doing that. And that's the way it is with almost all of them. Interfaces look bad too.

misttrack.io, the first one that offers actual pricing, though expensive. The cheapest plan is 200$ a month. Free tier is quite limited as if they give you an MVP.

https://blocksec.com/ offers metasleuth, cheapest plan is 50 dollars. Free tier is really limited at best.

Here is what we are gonna do. What I am seeing is that the model is more of a B2B thing, which is good.

1. We are going to concentrate on one thing, wallet risk score and be motherfucking the best in the world at it. No one will come even close. Just one thing, nothing else. Laser focus.
2. We are going to be much more cost effective.
3. Developer centric approach, regarding interfaces, docs, APIs.
4. Transparent pricing and customizable risk scoring
5. Seamless on boarding and user experience.

According to my intuition, it's gonna take a decade to get this up and running. I suppose, I will take that.

Let's get our hands dirty guys.

Will start with the following blockchains, will need to host them on my servers:

• Tron - #1 for illicit transactions in 2024
• Ethereum - DeFi scams, NFT theft, smart contract exploits
• Bitcoin - Still major for large-value fraud
• Binance Smart Chain - High scam token activity
• Polygon - Growing DeFi fraud

I think I will start just with Tron, Ethereum and Bitcoin. Just these 3.

Okay, given the deep analysis I will do I will need around 100 TB of storage. I got that capacity. But I will limit the networks to Tron, Ethereum and Bitcoin. That will leave me real good space for queries of the database itself.

Oh shit, I realized something. Given that, we start with chain analysis for free, and we will have no charges, no limits. From there we will do wallet risk scores. That will take some time to get right anyways, it's mostly statistical, good thing we won't be dealing with stochastics, we are working with the ledger. Some machine learning or deep learning later on will help us out too.

Stocks are a good entry point, especially if you can automate parts of it.

shijin said:

Stocks are a good entry point, especially if you can automate parts of it.

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For sure. I am starting with crypto though.

The venture is going to be called patrei.com

I started to slowly build it out.

thekhair said:

This is a beginning of my journey towards making 100 USD from finance.

I have around 6 years of experience in linux and software engineering. I am currently a cybersecurity engineer for a crypto trading company, I don't earn much, I think they are exploiting me, nevertheless I have a job, that's all I want to say, and some solid programming skills.

What I am going to concentrate on specifically is quantitative security analysis. Making money by detecting fraud in securities.

I am gonna start simple, with stocks. And from there we will see.

I will be in your care y'all, throw me in ideas so I don't fucking fail, and if you detect some crap, please call it out. I am 21 and 7 failed business under my belt is some interesting thing to have, not exactly that I wanted to accumulate that many.

Les go.

Click to expand...

This is an interesting journey. How do you intend to use your skill to detect fraud in securities?

Want to build a software for that, how would it work?

Goodluck