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Bank Of America Q1 Profitable Trading Days: 100%

Tyler Durden's picture





 

After the "humiliating" performance in Q4 2012, when Bank of America had a whopping 2 trading loss days out of 61, in has managed to redeem itself in the first quarter of 2012, when not only did it record seven trading days when it generated revenue of over $100 million daily, but more importantly it had zero days (of 60 total) with any net trading losses: a track record that can only be matched by any daytrader on Twitter. After all, what is better than trading when there is no risk of loss.

From BAC:

The histogram below is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for the three months ended March 31, 2013 compared to the three months ended December 31, 2012. During the three months ended March 31, 2013, positive trading-related revenue was recorded for 100 percent, or 60 trading days, of which 97 percent (58 days) were daily trading gains of over $25 million. These results can be compared to the three months ended December 31, 2012, where positive trading-related revenue was recorded for 97 percent, or 59 of the 61 trading days, of which 69 percent (42 days) were daily trading gains of over $25 million and the largest loss was $50 million.

And the stunning histogram:

Going further back, here is 2011 and 2012:

And summarizing it all: since the start of the New Normal 2009, Bank of America has had 962 profitable trading days, with just 97 days with trading losses: a 90.8% win record.

 


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Wed, 05/08/2013 - 10:45 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Must... keep... pensions... solvent...

Wed, 05/08/2013 - 10:52 | Link to Comment Pladizow
Pladizow's picture

And they'll still collapse!

Wed, 05/08/2013 - 10:56 | Link to Comment Ness.
Ness.'s picture

And we'll still bail them out.

Wed, 05/08/2013 - 11:02 | Link to Comment The Phu
The Phu's picture

My dad asked me the other day why I stopped trading stocks regularly and moved into illiquid assets like silver and copper-jacketed lead (not to mention those horrible implements of evil that throw that Cu+Pb at 2000fps).  My response was that I didn't feel that the market provided the little guys like me even a hair of fairness.  When HFT trades bid up take a penny per share per each trade from me, money-center banks maniupulate markets and never lose, and when the market goes up every day the fed conducts POMO, I cannot even dream of beating the house.  I'd argue that my chances are actually better at the casino than in the stock market.  Alas, it's easier for me not to play the game and just defend my stack.

Wed, 05/08/2013 - 11:03 | Link to Comment Zer0head
Zer0head's picture

Look out Goldman , BAC might just steal away the prized "Madoff Cup" you so proudly display in the front lobby of 200 West

Wed, 05/08/2013 - 11:13 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

@The Phu

I'm not sure what you are talking about? If you had simply invested in a major stock index like the S&P 500, you would have realized spectacuar gains over the last four years. Those stock returns are not just for the big guys - those returns are also for you.

Wed, 05/08/2013 - 11:13 | Link to Comment Stackers
Stackers's picture

unless said little guy bought at the top of 2007 .......

Wed, 05/08/2013 - 12:17 | Link to Comment The Phu
The Phu's picture

Hi MDB_,

 

Thank you for pointing out that I should, as a small, uneducated investor, trust my money to the market and "ride the wave."  I hate with my 401k and the few remaining IRA assets that are highly correlated to market moves.  However, the wealth effect that central planners are hoping I would feel have been offset by losses on my house, stagnating income growth (as an employed 30-year old, I'm fortunate to have a job, let alone one in which I'm fairly well compensated and have seen my income double since I first enetered the work force).  However, while my paper wealth in those retirement vehicles has increased, those are returns that I cannot touch (without tax penalties) for another, at best 29.5 years. 

What has increased in value better in that same time horizon?  I used to buy .223 ammo for $0.22 per round in 2008-09 time frame.  Last I looked, which was a few months ago, the same brand & style ammo was fetching close to $1.00 per round on sites like bulkammo.com.  My paper gain on the ammo, and the gun that shoots the ammo, have displayed fantastic gains.  However, those are unrealized gains because I recognize the utility of the ammo and the gun are worth more to me than the fiat I could convert them into.  I thank Barack Hussein Obama for that wealth effect... and only BHO!

My final point is this.  I used to believe that the Oracle of Omaha was a smart dude.  In fact, in today's universities, the Buffett model of investing is taught as if it were religion.  However, the school of hard knocks has taught me to see the real truth - he's a kleptocratic parasite.  I have never felt more wealthy than I do today with a stack of real money "under my bed" instead of a pile of Benjamins in my wallet or in the bank. 

I realize that your comments are made in jest.  Mine, however, are not.  I have real wealth - a good family, a good head on my shoulders, means of defense, some fiat, some real money, and beans, bullets, and bandaids.  I don't rely on a morally and fiscally bankrupt gov't for anything.  I believe in Liberty and personal responsibility.  I could give a rat's ass what happens on Wall Street because I'm no longer a slave to that paradigm - unplugged from the Matrix, so to speak.  And I couldn't be happier as a result. 

 

Best of luck to all of you when the system, the world as we know it, comes crashing down.  If it doesn't come crashing down, if I'm wrong, then come on over and we'll drop some ammo, drink a few beers, and polish some silver.

Wed, 05/08/2013 - 14:42 | Link to Comment Freddie
Freddie's picture

So what did he say?  "F**k you Bernake!"

Wed, 05/08/2013 - 14:44 | Link to Comment Rustysilver
Rustysilver's picture

The Phu,

I wish I took your advise 25 years ago.

Wed, 05/08/2013 - 11:04 | Link to Comment eclectic syncretist
eclectic syncretist's picture

This is absolutely in-fucking-possible without some form of insider trading going on.

Wed, 05/08/2013 - 11:30 | Link to Comment Manthong
Manthong's picture

Hillary turned 1K into 100K in cattle futures..

it's a piece of cake..  if you have official privilege

Wed, 05/08/2013 - 14:43 | Link to Comment Freddie
Freddie's picture

"What does it matter!!!"

Wed, 05/08/2013 - 11:46 | Link to Comment Pairadimes
Pairadimes's picture

Sunuvabitch. I think I just saw a unicorn walk past my office window.

Wed, 05/08/2013 - 12:08 | Link to Comment smlbizman
smlbizman's picture

goldman has the same kind of record, i would guess jpm and hsbc et.al do also....so can you guess who has to be losing ?

Wed, 05/08/2013 - 10:57 | Link to Comment fourchan
fourchan's picture

SO HOW IS THIS EVEN POSSABLE?

Wed, 05/08/2013 - 11:05 | Link to Comment bobnoxy
bobnoxy's picture

Perfect fore-knowledge?

Wed, 05/08/2013 - 11:10 | Link to Comment slightlyskeptical
slightlyskeptical's picture

Front running by HFT. It's a guaranteed profit if done on a large enough scale.

Wed, 05/08/2013 - 11:47 | Link to Comment Apocalicious
Apocalicious's picture

Scalping your clients. Or the more politically correct term is flow trading. FLOW!!! Its the new prop.

Wed, 05/08/2013 - 11:02 | Link to Comment mac768
mac768's picture

I just wonder how the "Bill Gross Haircut" looks on BAC, could be an ugly sight...

but dont worry, Dr. Bernanke will take care of it...

in the end, main street will get the haircut and wallstreet looks just fine

QED

Wed, 05/08/2013 - 11:16 | Link to Comment xtop23
xtop23's picture

And continuing to pay effectively nothing in interest to it's future victims.... I mean depositors.

Wed, 05/08/2013 - 10:59 | Link to Comment slaughterer
slaughterer's picture

BAC--we are talking the dumbest of the dumb.  100% success.  Clearly, HFT has some merits: even a moron can use it to make money.  

Wed, 05/08/2013 - 12:05 | Link to Comment Colonel Klink
Colonel Klink's picture

If anyone here on Zerohedge still banks with any of the majors, then you're truly not putting your money where your mouth is.

Wed, 05/08/2013 - 11:06 | Link to Comment Groundhog Day
Groundhog Day's picture

back to the perfect trading days....thoses traders must be geniuses

Wed, 05/08/2013 - 10:46 | Link to Comment CharliePrince
CharliePrince's picture

insider info?  on fed actions

Wed, 05/08/2013 - 10:52 | Link to Comment doomandbloom
doomandbloom's picture

just BTFD

Wed, 05/08/2013 - 10:58 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

We try to BTFBearings as rationally as possible.  We are using Factor aAnalysis to help model our sales data set to give us insights into sales patterns.  Take a look only if you like numbers!

"Factor Analysis of Ameru Sales"

http://tinyurl.com/bsjlho7

***

I encourage anyone who is really good at numbers to critique my piece, thank you.

 

Wed, 05/08/2013 - 10:46 | Link to Comment Possible Impact
Possible Impact's picture

If you check the math, it is actually 105% of the time.

Wed, 05/08/2013 - 10:50 | Link to Comment pods
pods's picture

Now that is doubleplus good!

pods

Wed, 05/08/2013 - 10:47 | Link to Comment B2u
B2u's picture

Must keep bonuses flowing to the 1%.

Wed, 05/08/2013 - 10:47 | Link to Comment fonzannoon
fonzannoon's picture

POMO

 

Wed, 05/08/2013 - 10:49 | Link to Comment Dr. Engali
Dr. Engali's picture

FOMO

Wed, 05/08/2013 - 10:55 | Link to Comment Seasmoke
Seasmoke's picture

HOMO

Wed, 05/08/2013 - 11:01 | Link to Comment gimli
gimli's picture

Andrew Cuomo

Wed, 05/08/2013 - 11:03 | Link to Comment Dr. Engali
Dr. Engali's picture

Maria Bartiromo

Wed, 05/08/2013 - 11:27 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Sonny Bono

Wed, 05/08/2013 - 11:30 | Link to Comment BeepBeepImAJeep
BeepBeepImAJeep's picture

Tony Romo

Wed, 05/08/2013 - 11:48 | Link to Comment Pairadimes
Pairadimes's picture

Majordomo

Wed, 05/08/2013 - 14:58 | Link to Comment Ban KKiller
Ban KKiller's picture

Burned out Limo

Wed, 05/08/2013 - 10:55 | Link to Comment fourchan
fourchan's picture

MOFO

Wed, 05/08/2013 - 11:06 | Link to Comment prains
prains's picture

OBOMO

Wed, 05/08/2013 - 11:15 | Link to Comment WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

GITMO

Wed, 05/08/2013 - 16:20 | Link to Comment prains
prains's picture

NO MO!

Wed, 05/08/2013 - 10:48 | Link to Comment Dr. Engali
Dr. Engali's picture

I think that the only person who can't make a profit in this market is Jim Cramer.

Wed, 05/08/2013 - 10:54 | Link to Comment FoeHammer
FoeHammer's picture

lol. He must be too busy playing with his sound board.

 

Muppets by definition cannot win!

Wed, 05/08/2013 - 10:51 | Link to Comment GraveyardSpiral
GraveyardSpiral's picture

Profit?  There's that word again.  I thought it was not "fair" to make a profit.  What's going on here????????

Perhaps its "Prophet" and I am misundertsanding something...or someone

Wed, 05/08/2013 - 10:54 | Link to Comment Ness.
Ness.'s picture

Bonds ripping higher, stocks ripping higher...time for me to get higher.  

 

At least the banks and F&F are making money.  

 

FORWARD!!

Wed, 05/08/2013 - 10:53 | Link to Comment TeamDepends
TeamDepends's picture

They must have the best of the best working there...

Wed, 05/08/2013 - 10:57 | Link to Comment thepigman
thepigman's picture

Crash master Ben Bernanke....I think he can  do it. Crash it, Ben.

Wed, 05/08/2013 - 10:58 | Link to Comment Arrowflinger
Arrowflinger's picture

Tyler - there seems to be a niggling typo in the intro paragraph..."has managed to redeem itself in the first quarter of 2012" ....looks like that should be 2013

Wed, 05/08/2013 - 10:59 | Link to Comment Hedgetard55
Hedgetard55's picture

"Niggling". Dat be raycis.

Wed, 05/08/2013 - 11:32 | Link to Comment speconomist
speconomist's picture

Was going to post precisely that.

Wed, 05/08/2013 - 11:01 | Link to Comment astoriajoe
astoriajoe's picture

Perhaps Brian Moynihan should contact James Randi as this is clear evidence for psychic ability, although the million dollar prize is peanuts for BAC.

Wed, 05/08/2013 - 11:01 | Link to Comment B2u
B2u's picture

Who needs profit?  Obama gives us food stamps and phones...and "free" healthcare.  Government will take care of us.

Wed, 05/08/2013 - 18:42 | Link to Comment Collapsed
Collapsed's picture

Who needs profit?  Obama gives us food stamps and phones...and "free" healthcare.  Government will take care of us Coporations. (Fixed it)

Food stamp money to Doritos, Obamaphones to Apple and AT&T, healthcare to Blue Cross.  Social Security and Disablity checks direct deposited to the banks...  The American Corpora-kleptocracy in action, executed to a T.

Wed, 05/08/2013 - 11:02 | Link to Comment Inthemix96
Inthemix96's picture

Now whats the odds on that folks?

Fucking remarkable it is, A 100% running streak.

Bet these fuckers is good at a Vegas chip table.

Shocked I am.

Wed, 05/08/2013 - 11:04 | Link to Comment Smegley Wanxalot
Smegley Wanxalot's picture

BAC got lucky more than I did in Q1.

Wed, 05/08/2013 - 11:07 | Link to Comment slaughterer
slaughterer's picture

Nearly everything at all-time highs.... VIX getting destroyed... even shitty sovereign bonds being bought up by an army of yield seekers...  P/E just crazily being pumped... no down days... fastest flow of liquidity and low-rate money available to buy just about anything except PMs without regard to fundamentals.... HFT just killing all semblance of a rational market where buyers meet sellers... when the Fed decides it is appropriate, the bears (Janjuah, Schiff, Gross, Rosenberg, Grant, even certain GS teams ...) will be paraded out to convince you to lose money shorting all of this.  Just ask yourself: how is Bidermann doing these days?    

Wed, 05/08/2013 - 11:08 | Link to Comment thepigman
thepigman's picture

Screw it. Let Bernanke give money to the banksters until they crash the markets. Always ends the same exact way.

Wed, 05/08/2013 - 11:13 | Link to Comment Dr. Engali
Dr. Engali's picture

I've said it before and I'll stick by it. when the time comes to short this market, it will have been too late. The lack of real shorts, the HFT robots, and these artificial levels have pulled away any underlying bid this market may have. It will vaporize in overnight trading and people will be scratching their heads with a WTF look on their face.

Wed, 05/08/2013 - 11:21 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Many of us realized this when the bond vigilantes ended up in the Mariana Trench a few years back.

Wed, 05/08/2013 - 11:05 | Link to Comment JustObserving
JustObserving's picture

Even if you have an 80% chance of making money on any given day, the chance of having 60 days without a loss is  1.532 in 1 million.

So either Bank of America got very lucky, or the markets are rigged.

Wed, 05/08/2013 - 11:09 | Link to Comment Smegley Wanxalot
Smegley Wanxalot's picture

 

I'd say it's a clear case of very lucky. 

Rigged markets would be prosecuted to the"full extent of the law".

Wed, 05/08/2013 - 11:07 | Link to Comment gimli
gimli's picture

I'm buying miners, so if you put me and BAC together we get a more respectable 50% success rate.

Each bank can put in this Gimli factor if they wish to avoid manipulation speculation. I do charge a fee though.

Wed, 05/08/2013 - 11:08 | Link to Comment slaughterer
slaughterer's picture

BAC has a large portfolio of Australian miners--like I said, dumb bank.

Wed, 05/08/2013 - 11:15 | Link to Comment El Hosel
El Hosel's picture

BAC is making Bernie Madoff look like a Fuking Boyscout.... Fraud is legal if you ar too big to fail.

Wed, 05/08/2013 - 11:19 | Link to Comment Downtoolong
Downtoolong's picture

Obviously these folks aren't trading under the same rules, terms, and conditions that you and I are subject to.

Given that, it doesn't amaze me at all that they are all multi-millionaires.

What amazes me is that they aren't all multi-billionaires.

 

Wed, 05/08/2013 - 11:20 | Link to Comment pragmatic hobo
pragmatic hobo's picture

what I'm wondering is, how they lost money on those 97 days when your "trading" mainly consists of front running bid/ask ...

Wed, 05/08/2013 - 11:31 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

I bet all those fishies who were caught up in sending off-the-record emails to fix things in their favor are feeling silly now. This is much easier.

If you're winning with a 100% success rate, you're pushing beyond the probable into the impossible. (Probability and Possibility are two different Sets, but hey)[1].


If you do the math on the probabilities, you're right into plaid. Universe breaking stuff. We're glad to see that Wall Street has left the reality based community, and joined the faith based community, just as the US government suggested. Time crystals away! [Reddit cross fertilized with HN if you need to catch up]

 

 

 

[1] Assuming your outcome isn't predetermined in some fashion. Invisible hand, I guess. Mysterious ways and all.

Wed, 05/08/2013 - 11:29 | Link to Comment LongPAU
LongPAU's picture

We cover BAC's losses, so how can BAC report a trading loss with a straight face?

Maybe they're just being polite?

Wed, 05/08/2013 - 11:37 | Link to Comment overbet
overbet's picture

first quarter of 2013

 

Wed, 05/08/2013 - 11:54 | Link to Comment economists_do_i...
economists_do_it_with_models's picture

100% every day is not enough.  They will seek more.  100% every hour.  Every minute.  Every milisecond.  100+ million every day.  More leverage.  Bigger bonus.  The greed will eventually do them in.

Wed, 05/08/2013 - 12:01 | Link to Comment economists_do_i...
economists_do_it_with_models's picture

Here is the link to file a complaint with the SEC:

https://denebleo.sec.gov/TCRExternal/questionaire.xhtml

If everyone that views ZH files a complaint, perhaps they'll stop watching their midget porn videos long enough to do their JOB.

Wed, 05/08/2013 - 12:02 | Link to Comment riskon.then.riskoff
riskon.then.riskoff's picture

Only market making can do this,but this passive strategy in FX market with EURUSD

open position each day (long or short) with take profit of  15pip no stop loss = +-75 hit rate in EURUSD

EURUSD 2002==>2012,10 yr  backtest = 75% green day

And with some guys  with "great spirit" of BofA trading floor, is not so difficult to turn this strategy to 100% green gay i think!!!!!


 

 

Wed, 05/08/2013 - 12:07 | Link to Comment Cheeseus Sonofdog
Cheeseus Sonofdog's picture

How do I get on the Feds special emailing list?

Wed, 05/08/2013 - 12:22 | Link to Comment ak_khanna
ak_khanna's picture

In a casino, the house always wins and in all the electronic exchanges, the too big to fail banksters are the operators. Armed with funds from the FED and using High Frequency Trading softwares and Derivatives, they move the markets exactly where they want it to cause maximum losses to the traders and the hedge funds.

Even if they do make a loss, their budies, the central bankers and politicians are there to transfer their losses to the taxpayers so that they have a 100% success record in transfering wealth to their coffers from rest of the world.

 http://www.marketoracle.co.uk/Article40231.html

Wed, 05/08/2013 - 12:24 | Link to Comment NoWayJose
NoWayJose's picture

Clearly those two trading loss days last quarter were due to human error. Skynet terminated those individuals abd is now in complete control.

Wed, 05/08/2013 - 12:59 | Link to Comment Shizzmoney
Shizzmoney's picture

Wow, batting a 1.000%? 

They must have upped their bribery game this year!

Wed, 05/08/2013 - 13:07 | Link to Comment bagehot99
bagehot99's picture

So, they are on the winning side of their trades 100% of the time? Who is on the other side?

Asked rhetorically.

Wed, 05/08/2013 - 13:26 | Link to Comment short screwed
short screwed's picture

I think this pretty much says it all for the equity markets.

Wed, 05/08/2013 - 14:32 | Link to Comment NEOSERF
NEOSERF's picture

Could some give me access to the 8AM morning meetings as to which stocks are in play each day...would help me out on my 40% accuracy.

Wed, 05/08/2013 - 16:14 | Link to Comment One World Mafia
One World Mafia's picture

And JPM and Goldman?

And the bullion banks that fix the the gold price twice a day:  Bank of Nova Scotia-Scotia Mocatta, Barclays Bank, Deutsche Bank, HSBC Bank USA, and Société Générale?

Thu, 05/09/2013 - 10:52 | Link to Comment Morrotzo
Morrotzo's picture

Bank of America and JPM had 123 days of profitability off the prop desk.

Even if they had it all sown up and such a knowledge advantage that they'd profit on 

95 percent of the days...

1000 to 1 shot, I think, .95 times itself 123 times.

Wow, these guys are really lucky!

:p

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