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An Insider Exposes The Algo Secrets Of The FX Market
From algos to trading pschology and from market-maker's tricks to the quant models that dominate, Batur Asmazoglu provides an insider's view of a large sell-side bank FX trading desk. While the likes of Goldman's Thomas Stolper have proved it, Asmazoglu's first 'secret' is that "while many believe the big investment banks are very sophisticated, that is not the case at all."
h/t @bondskew
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It's all Bullshit!!!
I can't wait for the day when they ALL cry 'Turn those rmachines back on! **TURN THOSE MACHINES BACK ON!**'
http://www.youtube.com/watch?v=dKYM62qSA_0
So as a leech when you sink your sucker into your host you have to be lucky.
You can almost always get some blood flow. If your lucky you can hit a vein and you are pulling in what you want.
You could also hit a main vein that for some reason is getting pumped up by the host and your ass will explode.
Fucking leeches talking as if what they do is important. I vote we hold a match to their head.
The real trick is that the main banks have insider knowledge of events. The FED is leaking info and then the computers know exactly how to push the prices. No matter what they come out with, they are succeeding because their miracle algos just trade on fancy insider trading. They get info early or the algos spoof trades and determine the price themselves and bet on their own inside manipulator knowledge.
Everyone thinks these algos are super intelligent. They are fast but not super smart- so how fast you trade illegally is the miracle here
It's simpler than that. They take out fire insurance. Then they set the fire.
Yes, I don't remember Peter Lynch or John Neff ever saying,
"Of course we have to bet against our longs, at least three to one."
Back in the day, that would have been correctly seen as conflict of interest, if not plain old fraud.
He must hate "real money". Real money(non levered) is invading the FX market with all sorts of gimmicks. Personally I think they're going to get their asses handed to them.
I posted this earlier today, it's a great blast from the past.
http://nymag.com/guides/money/2009/59457/
Thanks Fonz. ;-D FWIW, short the DAX.
yes fonz...that info deserves a thumbs down......awesome read fonz..thanks...
I enjoy tools like you smlbizman
EUR German Manufacturing PMI 51.1 51.3 51.3
EUR German Unemployment Change 25K -5K 9K
EUR German Retail Sales (YoY) 0.3% 0.4% 2.9%
EUR German Retail Sales (MoM) 0.5% 0.8% -0.2%
EUR Core CPI (YoY) 1.0% 1.1% 1.1%
EUR CPI (YoY) 1.1% 1.3% 1.3
yen, i hope u dont think i am the down vote....i dont know who would down such basic info....
@ smlbizman : Do some homework. Everyone deserves a second chance?
READ FONZ'S LINK!
2009 New York Magazine artiicle about ZH.
(Informative though some errors)
When faced with reality you still deny the truth?
I'll bet you ride a bicycle to work . No Worrries smlbizman all in good fun.
Never read that before. Thanks. 40 Tylers? LOL...and that was 4 years ago.
I had not realized Marla was a partner. Also funny how soon after the site went mainstream they were accused of selling out.
What about the Jews?
Still stealing, killing, cheating and lying....ahhhh, good times.
Don't forget the organ harvesting.
Israeli butchers harvesting corneas in Haiti - Video
Israel admits to organ thefts
"Israel has admitted that it harvested organs from the dead bodies of Palestinians and Israelis in the 1990s, without permission from their families."
"The admission follows the release of an interview with Jehuda Hiss, the former head of Israel's forensic institute, in which he said that workers at the institute had harvested skin, corneas, heart valves and bones from Israelis, Palestinians and foreign workers."
"In the interview, which was conducted in 2000 when Hiss was head of Tel Aviv's Abu Kabir forensic institute, he said: 'We started to harvest corneas ... Whatever was done was highly informal. No permission was asked from the family.'"
"During his interview with Scheper-Hughes, Hiss said that the eyelids of bodies were glued shut to prevent the removal of corneas being found out."
"Our sons are plundered of their organs"
"Palestinians accuse the Israel Defense Forces of taking organs from their victims. Donald Boström writes about an international organ trafficking scandal – and about the time he saw the cut-up dead body of a nineteen-year old Palestinian."
"You could call me a 'matchmaker', said Levy Izhak Rosenbaum, from Brooklyn, USA, in a secret recording with an FBI-agent whom he believed to be a client."
"Rosenbaum’s matchmaking had nothing to do with romance. It was all about buying and selling kidneys from Israel on the black market."
"Rabbis, politicians and trusted civil servants had for years been involved in money laundering and illegal organ-trade."
"On the question of how many organs he has sold Rosenbaum replies: 'Quite a lot. And I have never failed,' he boasts. The business has been running for quite some time."
"Israel has repeatedly been under fire for its unethical ways of dealing with organs and transplants. France was among the countries that ceased organ collaboration with Israel in the nineties. Jerusalem Post wrote that 'the rest of the European countries are expected to follow France’s example shortly.'"
"At a conference in 2003 it was shown that Israel is the only western country with a medical profession that doesn’t condemn the illegal organ trade. The country takes no legal measures against doctors participating in the illegal business – on the contrary, chief medical officers of Israel’s big hospitals are involved in most of the illegal transplants, according to Dagens Nyheter (December 5, -03)."
"While the campaign was running, young Palestinian men started to disappear from villages in the West Bank and Gaza. After five days Israeli soldiers would bring them back dead, with their bodies ripped open."
"Talk of the bodies terrified the population of the occupied territories. There were rumors of a dramatic increase of young men disappearing, with ensuing nightly funerals of autopsied bodies."
"On several occasions I was approached by UN staff concerned about the developments. The persons contacting me said that organ theft definitely occurred but that they were prevented from doing anything about it."
"Five days earlier, on May 13, 1992, an Israeli special force had used the village’s carpentry workshop for an ambush. The person they were assigned to put out of action was Bilal Achmed Ghanan, one of the stone-throwing Palestinian youngsters who made life difficult for the Israeli soldiers."
"As Bilal was put in the grave his chest was uncovered. Suddenly it became clear to the few people present just what kind of abuse the boy had been exposed to. Bilal was not by far the first young Palestinian to be buried with a slit from his abdomen up to his chin."
"The families in the West Bank and in Gaza felt that they knew exactly what had happened: 'Our sons are used as involuntary organ donors,' relatives of Khaled from Nablus told me, as did the mother of Raed from Jenin and the uncles of Machmod and Nafes from Gaza, who had all disappeared for a number of days only to return at night, dead and autopsied."
This is the kind of sick, twisted shit that really causes me to sour on humanity. It is really, truly'disturbing at the deepest depths of the human soul.
I wonder if this is why Feinstein and Boxer are looking so undead...
Marla is missed, not for her contributions to zerohedge, per se, but for her epic weekend DJ parties that she ran, and the MP3 clips she left at 180 mb a piece. Good times.
Yes, the music.. Loved the DJ parties!
And her naked boobie pics..
Loved those, too...
I still queue up her Albuterol mix. Salut.
fimim respice is OUT. ??
Fonzannoon
I saw your post earlier. Marla was a wonderful asset to this community back in the day. In fact, she would stream music feeds for Friday or Saturday. We all partied from the keyboard.
http://www.zerohedge.com/article/radio-zero-material-non-public-information
Don’t ever discredit the very people who helped you see through the unthinkable plots. That includes a person called Sacrilege.
You’re lucky my wife called twice. I don’t think this post would have gone civil. We are a family that you can never break up. Don’t ever make comments like that again. Understand?
I think part of what fonz is saying is that the family already broke up. Kinda like the Jackson 5. Success can wreck a family. Happens every day.
where did I discredit anyone?
what are you talking about? If you were on here yesterday there was a whole thread about how this site sold out. I found it interesting that the article mentioned the same thing almost 5 years ago. I would not have thought that. As for Marla, I did not discredit her.
Get help
Let’s call this a truce. I would like to explain my actions in handing your ass to you.
Believe we have bigger fires to put out, and I consider you to have the necessary skill set.
fonz is one of the good guys Atomizer. No way he is ripping ZH or the founders of this site.
I was lucky enough to chat with Sacrilige for an hour or two in the middle of the night here not so long ago. It was fantastic.
@ Bay of Pigs You missed the true fight club. Ya had to know basic algebra just to place a bet. ;-)
ur right yen....if it wasn't for the captcha, id b a 4 yr member....
LOL, those simple math questions kept the govenment trolls off this site. I miss those days
/lol
Yea, they gave me trouble at first, no pictures of pennies and stuff.
Yeah, I started reading here late 2009, and didn't post until 2010.
I found the crowd kind of intimidating in those days. Cheeky Bastard and some of the originals used to hammer me pretty good if my posts weren't spot on. Haha.
My Fellow Pilgrims/Pirates! Good on Ya! ARRHHH.
I miss Cheeky.
@ JohnG You have a few weeks on me. Why the sudden comment?
cheeky bastard was brilliant
reading that article is how I discovered zerohedge...many moons ago...
I'm going to buy the KTM 2 stroke 250!
Go for the 4 stroke monster.
Much less maintenance and power starts at 500rpm
Damn. I even left footprints on that article. Guess that was back when I was full of P&V.
Odd the way this has all gone, both in the markets and on this site. Back then, I had a lot of trouble believing things could last this long; now I smile when I read the ubiquitous, albeit varied in style, "any second now". Around here a lot of folks have moved on, some from behind the scenes at ZH-HQ, and some on these comment pages. Some gave up, some got bored, some didn't like the new neighbors, some realized everything possible has already been said---and perhaps better than anyone can say it now---but others feel that since authors still try to write after Shakespeare and the Greeks, what the heck. Others got banned. A second or two of thought and I can name fifteen shown the door.
I smile at, but never quite understood, the Cheeky cult. He was interesting, but his departure has taken on near mythic status, perhaps owing largely to repetition of the meme. There were many interesting posters back then, even in the "anonymous" days. Andy Dufresne, MinnesotaNice, Agora, deadhead....lots. Lots of FIRE-types, too, before we all got measured by the masses for our boiled rope.
Nothing is static. Everything evolves. ZH, and whoever Tyler #1 is now (if he is different), still deliver the goods more often than not. Still some pearls before the swine.
@ chindit13 Thanks for the "good will" last night/yesterday. (Time Zones) You're brilliant...
I stay for the comments. More people get banned, or there is more censorship (deleting of posts has happened recently, whereas it was completely unheard of, the first few years) and the community will move on as well, which would be a shame, but this fight is bigger than ZH.
that article was more for people on here to see what Zerohedge was, so maybe they can distinguish it from what it is. If the real Tyler is still out there he knows what I mean. Atomizer cracks me up threatening me and telling me what I can or can't say, even if it's because he misunderstood me. That comment from him tells me he has been here forever, and misses not only the whole goddamn point of what this place used to be, but what it has become.
atomizers comments kind of remind me of our great govt leaders, who forget what the 1st amendment is about. they evoke it when its convenient, pretend they honor it. yet threaten to silence others when its not so convenient.
We all know about the operatives on this site. Discrediting me will get you nowhere.
Not looking to discredit you, but as a "founding father" of the comments section, don't try to surpress the very spirit of revolution that first brought you here. You didn't hand fonz his ass, you acted like an ass. Fonz actually did a favor to zh, he allowed for an honest gut check which brought out assessment support by many of the old timers. Kudos to fonz
Fonz is fine and I explained my actions. What more is there to discuss?
It's all good. No worries. I am trying to come from a good place if and when I question things. I hope that is known around these parts.
No hard feeling, I had my own following such as Londonbanker. Didn’t realize you were part of me during the early times of this evolution [somehow we never connected]. Sorry I lashed out. Don't want this site to turn into a pit. You saw my other postings regarding MW, hope it explains my passionate feelings in preventing the downfall of a great financial news hub. I yell because Atomizer cares. Just remember that. OK?
Have a good evening
Would "tounge punch her fart box" constitute "a pit"? In my opinion, this sort of dialogue in the context of a reaction to a ZH post, is what gives the site color, perspective, and imagination. Like the free market (concept - not reality), people should be able to say what they want - offensive or otherwise. Somehow, out of a process of various exchanges that I have seen between bloggers, great information is released. And at the very least, I am at least amused, but, comfortable with the knowledge that there are others who think, feel, and live exactly as I. I receive as much information from the bloggers as I have from the posts - links to deeper analyses, other perspectives. If the site is to "change", then I would want that change to occur on its own volition, and not as a result of some implied social majority ruling on "etiquette" constantly modified to accommodate the sensitive and the arrogant. I already have too much of that shit in my life. cheers ZH
Threaten's getten' real:
http://www.wealthdaily.com/articles/first-amendment-violation-silences-t...
http://www.govtrack.us/congress/bills/113/s987/text
@chindit13
Haven't seen you comment in a while. From one ZH oldtimer to another, I never understood the Cheeky cult. Frankly, never understood the Chumba cult, either. I still see the occasional post from oldtimers like MisCreant, John McCloy, AccreditedEye and JimMN (to name a few). CogDis and TruthinSunshine are a longtime regulars and they always have a good take. There are tons of others (sorry if I didn't mention every user) still here, but I miss the early adapters like deadhead and HowardBeale. And I always look for Fonz because he has a good take on things and posts diligently.
To me, ZH is the same as it ever was. In its early days, ZH was a daily expose' of the market fraud and fiat ponzi scheme. Now that it is an open secret and many here have assimiliated that into their daily thought process, it makes living in the broken clock seem like the pysch ward (e.g. TWRTQ today). Always loved your posts and comments, chindit, and look forward to more.
Thanks, but I kind of feel I have been posting a little too much lately. Periodically I get focused on something, or incensed about something, and just can't keep my mouth shut. Also, I've been stuck in a lingering record-setting monsoon, so I've been spending more time indoors, with access to the site between books (running through all of Evelyn Waugh right now).
I agree that for the most part ZH articles are as they always were. Sometimes there's a little too much pathos for me, or conspiracy, and I take a leave of absence. Plus, I do think all of us, for the most part, are running out of fresh things to say. Every once in a while, however, Tyler just nails one square on the sweet spot and it's time to take out the tape measure. That is what keeps me here, because even though other sites might catch one, nobody gets as many as the gang behind the curtain here. (Okay, Tyler, does that brown nosing sycophancy get me a free membership? What? It's already free? Well, damn, that's value!)
Yes, the leash is shorter for some kinds of speech, but there has been a lot of pointless bigotry and racism that doesn't serve any purpose, and detracts from the site's message. I have no problem with facts, or commenting on a person's or a nation's actions, but plain old hate speech, or presenting spurious and venom-filled conclusions, even if drawn from facts, serves no one. Because Tyler has written some superb pieces and broken some important stories, he has gained access to information he would not otherwise have. If he runs a site that drags its feet in the most vile of human gutters, he may well lose some of that access, and thus lose the impact he has had in the marketplace. Some might feel that cutting out hate speech is too high of a price to pay for that ongoing access, but those who feel that way can migrate to plenty of other sites where that speech is welcome. Members have to decide what their priority is, and appreciate that just as they can control access to their own homes for reasons of their own choosing, Tyler can do the same to his home here. There is the 1st Amendment, but there is also common decency, as well as personal preference. Since the introduction of the racial discrimination policy, there have been plenty of comments that some might find offensive, but which have stayed within the rules because they stuck to facts. When personal biases, and nothing more, enter into it, however, it seems those who cross that line have been asked to leave. His house, his rules.
Chindit you can never post too much. Back in the old days there were a lot of insiders and knowledgeable people posting the kind of information and analysis you can't get anywhere else. You are still posting, Sudden Debt was good for a while before he decided to play it for laughs. Who else is there above the level of "gold bitchez" or small time crabbing. There isn't much insight left.
A lot of insiders still browse here and there but, alas, forget about trying to get a good convo going on these boards re the topic at hand. This thread is quite good though.
[ wrong tree ]
And please continue to take the pauses that refresh, if that's what keeps you returning. Did you previously go by the apparently retired moniker 'Apocalypse Now' ? -- that's your only peer here, and I wonder if it's you.
(Chindit)
I don't mind anyone saying "any second now". Most of the time they would be right if this game had any honesty and morality at all.
I think the sheer nerve of the Banking Lobby, the wretchedness of Bernanke, the slitherin Geithner, the putrid corruption in the Justice Dept and every regulatory authority, the ineptitude of Obama, the hypocrisy of the 'elected' representatives *, and worst of all, the supine gutlessness of the mainstream media ... has stunned us all.
I don't believe anyone could have honestly anticipated they would just break ALL the rules, spit on the Constution, and defy any thought of punishment.
The empire is over. Stop paying your taxes. Buy gold.
* balance the budget just for once, you cretins.
thx, great article.
after having read it, i do take pity on zero hedge.
seriously xD
fonzannoon, i enjoyed reading the article.
being a new member here, i did not know about the roots and history of ZH. There are some versions of its history going around at forums like Forex Factory but this was a good and welcome primer.
Also did not realize that some of those original members are still posting here to day, so salutations to you.
ZH has certainly removed the sleep from my eyes.
Thank you Tyler.
I learned a bunch but the camera focusing is terrible...
Was this recorded on someone's iphone?! They're called "microphones". Please buy at least one.
fucking idiots ... the subtitle everything they say then put their web address right across the subtitles so you can't read them
How the fuck are we supposed to take these fucking douches seriously when they can't even edit a simple video without a glaringly obvious mistake ...idiots
http://rt.com/op-edge/us-economy-hedge-fund-660/
Webinar - Intro to Quant Based Screening
I really want to unload my feelings on this fraud. Tired, you can do your own research. Good night ZH.
2008 revisits very soon, and it'll be another intentional implosion of the system; the ability of the Fed to support both equity and bond bubbles simultaneously runs out very soon, thus it gets quite ugly.
Without the ability to put a hard cap on treasury yields, the Federal Reserve inevitably implodes by mere size and composition of its balance sheet.
Does anyone who recalls Obama's investment advice in 2009 that "now may be a good time to buy some stocks" find it at least curious that he made a specific (and contrary, at least implicitly) reference to the stock market again, for the first time in 4 years, in the form of "market advice" & directed towards the average Joe?
There are no coincidences. Obama made frequent reference to the Bernanke induced bear market equity ejaculation when running his re-election campaign, he can't run again anyways, and he's laying "average Joe" hints that equity "markets" are less than safe because they're going to be imploded again, and he'll blame it on the Republicans (who will in turn blame it on him and Democrats), while being able to say "I warned Americans about this."
I do recall Obama seemingly calling the bottom. Coincidentally he had just met with all the top bankers around the same time. There were no minutes published from the meeting, but several bankers did interviiews saying things like " for the good of the country."
Interesting enough, at the same time and even prior in late 2008, it was open knowledge via CNBC "sources" that the Fed was going to use hedge funds by giving massive leverage in order to help "regain confidence in the banks.".
Spot on.
Yeah, he said the "price - profits ratio" was really attractive. Some market expert.
That article, which I recall, says zero hedge started in jan. 2009. I started following the site back in 2007/2008, so that's not accurate. Maybe they are referring to when it switched from blogger (@blogspot.com)
Anyway, getting a bit nostalgic here, but I used to follow and post on the CBS market watch board back then and a guy called "fdralloveragain" referred to zero hedge in a post. So it began, at least for me. Fdralloveragain went on to start his own blog, but then abruptly disappeared.
Someone on Mish's blog mentioned ZH way back (4+ years) and that was it for me.
John Conner
He was a part of our group who ditched Market Watch and migrated to ZH blog. He is no longer with us, only spiritually. I can’t even explain how many virtual financial friends I have lost. They shouted hard to help future generations learn the truth. At market watch, alphabet soup individuals would PM me and thank me for my efforts to expose the fraud. Every fucking one of them told me to never let up on the pressure. I’ll do this until I take my last breath of life..
I really used to love the MW blog before it was invaded and then they changed the format and began censoring. I am not a financial insider but learned so much from your group, and am grateful that I became "aware" back in 2007. It is very sad that fdr has passed. I figured as much but I still go back to his blog every now and then to see if a new post would come up. He was brilliant.
Hopefully everything you and others have done will continue to pay dividends, at least in awareness. I myself used to post a lot but have had a few life events in the past few years that has preoccupied my time. But I will always follow ZH. It is the best site on the web IMO.
Do you remember lifeboatwithductape? Hehehee. Was pushing about 800+ followers. Everyone who got MW account fragged would ask.. How do you maintain your account? I would reply, 'someone wants me to speak'. But we all left and came here.
Defintely remember lifeboat. He had that avatar with the big Bernanke head swirling up from a boat and wave. I still have an account there but stopped following it in late 2008 and came here as my main site. Aside from banning people, they changed the comments format where you could only see 3 or 4 at a time.
Correct, that was my legendary MW avatar. Plunge protection team exposure, winks.. It took years for the masses to connect the helicopter to fraud. LMFAO......It finally became mainstream discussion.
I was "the guy" on the other site who literally called the crash - yes, it was part luck but also part something else since I didn't ever call for such an event prior - complete with pictures of Medivac Helicopter Battlefield photos.
Do you remember fish, or John Paul?
What difference does it make on a past prediction that was spot on. I saved a lot of family fortunes. What did you do to help prior to Lehman brother's and Bear Stearns collapse? Did you appear on the TV to cultivate buying the stock? Lifeboat shielded financial losses.
And let me add one major detail, I have never talked about that deed for helping others. Now that you know who I am, why bring up something no one is even is aware of?? I did the right thing by reaching out to people to help them protect their assets. It was called paying it forward.
Is there anything else you wish to flush out in this ZH open forum to discuss?
I think you misunderstood my comments.
I was BLSH on a trading forum back in 2005 to 2008, and pitched a perfect fastball that Lehman, AIG and Bear Stearns would all go tits up 5 weeks prior to the main event, thus spawning a liquidity crisis. I didn't know nor predict that AIG would be bailed out completely, though I did articulate the possibility due to its massive involvement in daisy-chained insurance policies (and due to its role as a financial derivatives contract reinsurer).
And yes, I warned as many clients, family members and friends as I could about things they were completely unaware of during the lead up to the financial crisis, and I know for a fact that many took actions based in my warnings that saved them a lot of resources & angst.
You're maybe confusing me with someone else?
edit - I see now that you were referencing Market Watch (I believe). I was not "the guy" there as I wasn't a member.
Face palms myself. Can I buy you dinner in Marco Island or Myrtle Beach? Been a little cranky today over something that is resolved. Yes, I did misread your post. At least we both did the right thing. Do you know what sucks the most? It’s not about misreading your post, rather that everyone now knows my hidden secret in helping people brace against financial losses. Guess who typed the confession.. me. Tyler, bury this story to page 1,523.. LOL
I never talk about it. But very proud to have helped. Good job as well. You know those families are grateful to you for a life time. Never abuse that privilege.
So about dinner?
We're 100% good. I knew it was a case of crossed signals.
That's why you saw me go apeshite on a poster last night. I don’t want to have people come in to turn this site into a MW disaster.
Here is a trend I am seeing for the first time on ZH :
This Tyler article appeared on BI BEFORE (unless i'm blind) on ZH.
Wall Street Head Hunter On Morale - Business Insider
Just noting, not commenting.
OK, found it three pages back on ZH backlog. THose BI guys are way behind the curve!
Just 2 technical remarks:
1. Never shoot with Auto Focus if you have some electronic screens or/and strong light from different sources. The focus always tries to adopt and can´t stop pumping. So you always have these distorted images.
2. You can rent for close to nothing Lavallier Mics you can connect onto the XLR inputs of the camera. If you don´t have XLR use an adapter, or simply a hendheld Micro. This Video is nearly unwatchable. The pictures are bad enough, but using a good and nowadays cheap mic. would have saved the Video, since it is about the spoken content.
Yeah, but you don't have to add any reverb.
Thank you.
This is exactly what I advised the Ransqwuak team but it seems the "Nollywood sound" is here to stay... "Hey, guys, so we've got the mic like the guy on ZH suggested, now where do we position it?" "Just put it in the corner - pointing AT the corner... check 1 2... brilliant! it's got that tinny lo-fi echo just like the other social media!" "Maximum Respect, dudes"
Be cool if some crazy bastard walked into the vacume tube maze with an AR and went to town. Just think........an entire civilization dependent on digital zeros and flashing red and green lights. Surely that's stable.
Deleted.
The big banks have two 'secrets' that guarantee success:
1. An unlimited supply of free Fed cash to place oversized leveraged bets on any position they want - enough to literally move markets the direction they want them to go.
2. A friendly (or non-existent) regulatory and market environment that ignores data, news, and price manipulation and will even reverse algo trades that go wrong and generate losses (while not doing the same on runaway algo trades that generate profits).
These are the real secrets...
I think he also did a good job of explaining how stops, options, and OTC derivatives trading adds volatility to the market.
I think he also did a good job of explaining the conflict of interest that every sales person inherently has, and the source and motivations of the recommendations they are making to their clients.
I think he also did a good job of demonstrating the impossibility of anyone consistently making money in the FX market over time unless they have access to the real time order flow at the institutional level like he does.
“Well, what do you think Valentine?”
“Sounds to me like you guys are like a couple of bookies.”
“[You see Mortimer] I told you he would understand.”
Trading Places
LOL, wait till Jeff Macke finds out about this, his head will explode!!
https://www.youtube.com/watch?v=79HLnTPxMho
I stuck it out and watched the video in its entirety (at the loss of my quality pr0n time)... a few things struck me while watching:
1. the IT crowd generally have always had a skewed reality of how things work on the business side (there are exceptions of course). most of the time they are writing from a spec but don't fully understand the reasoning behind certain features... (unless they're working with a patient trader/quant or on the support desk)
2. Batur's quote Re: the banks are 'not sophisticated' - he's talking about the underlying technology, not the trading rules. some of those systems date back to the 80s/90s, but he goes on to explain that the people coming up with the rules are sophisticated, but the software is old because the rules change frequently and the project life cycle cannot keep up, so even options pricing is all done in Excel. So the tech might be 'ancient' but it works... In the words of Charles Oakley, 'if it aint broke, don't break it'
3. Batur's comment about algorithms not being able to call trends as good as a human seems a bit bias (and IMO just wrong) Click-trader desks are continually being downsized in favor of algos... even I've come up with an algo that calls trends incredibly well and I don't have milions to throw at the problem.
now back to the pron..
You know the Masters of the Universe aren't all they're cracked up to be when they come crying for a bailout.
good thread, thanks for "most" of the comments
There isn't anything to watch on the video so no point in wasting valuable eye time on it. Perhaps one day the vid techies will realize that audio requires as much diligence as the video side, until then it will be like listening in a garbage can. After all they do award an oscar for audio...