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Virtu Explains Why It Lost Money On Just One Trading Day In 6 Years
It has become the most laughed at chart in finance: every time anyone who has spent even a few days trading, looks at Virtu's public track record shown on the chart below and which represents one trading day loss in 6 years of flawless profitability, riotous laughter ensues as it confirms what everyone knows: the market has become a regulator-endorsed cesspool of HFT fraud, where the algos make all the money due to countless predatory and parasitic practice listed and explained here too many times to count, enabled further by a fragmented and broken market whose exchanges now break on a daily basis.
Moments ago ahead of its official break for trading, and one which many anticipate could well be a repeat of the BATS IPO debacle, Doug Cifu, was asked how Virtu could have just one trading day loss in 6 years.
His explanation:
"we win more than we lose."
Odd, that was probably Bernie Madoff's "explanation" during those rigorous SEC audits.
Still, but the question arises: who is on the losing side of all those winning trades, and how can someone or someones lose money on every single trade for 6 years and not care?
Oh yes, because the market is rising thanks to the Fed and as a result, who cares about losing a few pennies on every single trade millions of times a day when every single central bank has gone all-in - and succeeded in - in reflating the biggest global asset bubble in history.
So congratulations Virtu, enjoy your IPO. Just make sure your founders cash out before the next massive crash, because one can be 100% certain of one thing: everyone - the regulators, the enforcers, the Fed, the banks, the media - will blame it on the nameless, faceless high frequency trading algorithms.
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Marxism is starting to look better and better everyday.
I'm looking at a start up guillotine and pitchfork manufacturer. Projected sales look promising.
"we win more than we lose, because we're cheating"
There, fixed it.
"We front-ran some folks"
They make markets. They are the House and the House *always* wins.
qft
"It has become the most laughed at chart in finance: every time anyone who has spent even a few days trading, looks at Virtu's public track record shown on the chart below and which represents one trading day loss in 6 years of flawless profitability, riotous laughter ensues as it confirms what everyone knows: the market has become a regulator-endorsed cesspool of HFT fraud, where the algos make all the money due to countless predatory and parasitic practice listed and explained here too many times to count, enabled further by a fragmented and broken market whose exchanges now break on a daily basis."
Just spit a Vodka/Tonic on my I-Pad! Was worth it though!
It's not cheating, it's creative re-interpretation of the rules....
Ok, Belicheck.
Pretty much.....
Only a fitting comparison if Belichick lobbied the NFL to make special exemptions for things only the Patriots were capable of doing. Or if when the NFL rules committee tried to change the rules, Belichick could make a call and keep it from happening. That's the relationshpi between HFT and congress.
New corporate slogan:
Predation Is A Virtu
"Fixed it" was clever the first thousand times I read it. It's no longer clever.
"Fixed it" was clever the first time I read it. It's no longer clever.
Fixed it.
I'm on the winning side as well. For every single breath I take.
I would have gone with, "It's why we're a whole lot richer than you."
But then again I'm an asshole.
Wouldn't you know, chilli sauce, failed to deliver
haha ...in an unrigged casino the odds of this occuring are about 1500 to 1 .
So... then it's within the realm of probability, you're saying?
The sun going nova tommorrow is within the realm of possibility but I'm not gonna bet on it......
No, the probability of this occuring in an unrigged market is zero.
Here's what I get using a 0.5% probability of loss per day. (.995)^2190 = 0.00000171 or about a 1 in 58,540 chance if there's even a miniscule 0.5% chance of turning in a losing day.
Under real trading conditions where the win percentage for an excellent trader might be 60%, excel returns a Div/0 error becasue the probability is literally too small to calculate.
They are a whole lot higher than that. Even if it's 60/40 winning/losing edge daily...it's more like infinity to happen for 6 years
That's funny, you think what this guy is doing is the"free market". This is Marxism, the Oligarchy always wins.
P.S. The other side of the trade is your gov't sanctioned retirement savings.
I can't help it if I'm lucky
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
"So congratulations Virtu, enjoy your IPO. Just make sure your founders cash out before the next massive crash, because one can be 100% certain of one thing: everyone - the regulators, the enforcers, the Fed, the banks, the media - will blame it on the nameless, faceless high frequency trading algorithms."
They will likely target for blame Tylers.
Wankers
Doug C.I.F.U
Did you just have a seizure or something?
apologies... somehow Ghostery causing the seizure
It's called HFP or High Frequency Posting. Get with the program.
Doug C.I.F.U
Doug C.I.F.U
Thief
CALPERS and Detroit pension fund and others probably on the losing side of all those trades.
In a casino, the house always wins over time, and in a rigged casino the house wins every day.
skimmers, scammers, and flim flam artists
And that's just the tribe!
Markets are green now...
All is well again today!
What a fucking joke!!!!!!!!!!!!!!!!!!!!!!!!
You are a fraud. You belong in prison with your buddy Bernie madoff.
the game used to be played with your hands...now a machine plays it..and the people with the biggest machine wins..everyday....its not fair...but no one seems to care about that anymore....
invisibe hand
Its hard to blame a parasite like Virtu. I blame the game. How is this type of behavior good for price discovery and faith in markets? The markets have become a flim flam confidence game. Unfortunately, a lot of 401Ks and pensions are on the other side of those trades. When this ball of shit finally splatters against the wall, I won't be looking at Virtu. I'd be pointing a finger at the regulators, and 401K fund managers, etc. They have a fiduciary responsibility to keep the markets and investor money safe. Those are the ones to blame. They could easily kill the parasite, but they refuse too. I say Fuck them and save in PMs.
I don't agree when a murderer blames society for his choice to murder, so it would be stupid to think that HFT don't know they are morally breaking a law.
Just because WS has captured regulators so much that laws are corrupted to allow them to do the wrong thing does not mean that it is right.
HFT provides liquidity only in the PR releases of WS criminals. Real people know that 1 loss out of 1500 wins is not a fair system.
I don't care about ehm extracting transaction costs for HFT trading. I do worry about the front running and the quote spoofing. They shouldn't be allowed to put in orders and cancel them before others have a chance to act on them, but apparently they do it a million times an hour. Also since they are weighing down the markets with all their fake quote stuffing, a transaction tax to cover that cost would also be justified.
How does the SEC stand idly by while a company posts totally improbable trading success?
Collecting bribes is hardly an instance of "stand idly by."
Nor is watching midget porn (so I've been told).
The SEC is part of the game. And you will be removed if you don't play.
Clinton's SEC prosecutions on Wall Street? 1,000
Bush? 1,200
Obama? 1
There is no game. There is only movement from the lesser to the greater. That is why I don't play anymore. Fuck 'em all. Other than you guys with a few hundred million in the coffee can, we're all fucked.
Have a great day!
It also bothers me that Doug Cifu is walking around like his underwear are Teflon coated. His crew are protected. Love how those CNBC guys act like this parasitic ass hole is Gods gift to trading.
He's all they've got left!
All they have left... are criminals. I guess this is just another sign that the show is closing down.
We trade 5 million times a day, so we almost never lose... huh?
They make it up on volume, duh!
Yeah but how many of those trades actually execute and how many are manipulative bids? Only to be cancelled before the execute, thus driving the price up, then making the sell order that executes, thus making you always on the winning side of the trade? Repeat, reverse, repeat, reverse, PROFIT!
casino
Someday people will look back on this with contempt and utter disgust.
Someday..
There are many of us who already look upon this with contempt and disgust. Yet we're all powerless to do anything because the worthless, criminal regulators who are supposed to do something, don't! Then they leave and take a high paying job in the very industry they were supposed to police. If the people were to try to step up to fix the injustice, government would slap them back down.
Any questions?
Put in a twenty-four hour delay on all transactions - problem solved - sure, good luck with that. Just like trying to get a flat tax system.
It doesn't even have to be 24 hours. A simple 5 minute requirement would allow the other algo and human traders to execute on those fake order.
A longer time delay would allow the mom&pop investers to react to trends - many people are not in front of a monitor every second of the day.
Never mind that the odds of you or any other carbon based life form achieving this trading track record is less than one in a Googol to the power of Avagadro's Number. It takes more than that for the SEC take notice and study it really, really hard.
Obama's SEC has prosecuted only one Wall Street crook since he took over the WH.
Clinton? 1,000
Bush? 1,200
Start using marked cards in the garage poker games.
Everyone cheats.
Have you ever been fat fingered?
There's nothing like it!
Virtu should be renamed Sun Capital , and their slogan can be... The sun rises every day and so do our profits...
Who painted the straight face on that clown?
Give a penny, take a penny. Take a "penny" 5 millions times a day. Bitchez.
See the movie "Office Space" for a recap of how that stategy plays out.
For what will they be using the IPO money? Will shareholders ever get a penny of earmings?
This IPO shows what a total scam Wall Street has become.
Back in the day (whenever that was), companies went public to raise funds to invest in the business. In exchange, shareholders received a proportional share of profits.
Companies that still pay a dividend are fucking idiots.
Goldman, JPM and others perfected the model of paying all the profits to employees while "investors" get nothing but a manufactured and manipulated share price.
More evidence that Zion is cashing out of the dollar and the DC US.
The banksters need to repay us.
The dollar is up on "exit," not "strength."
The CEO should have done the TV interview while wearing a ski mask -- because obviously they are robbing people blind.
Best comment of the day.
The banksters need to repay us.
We didn't hire Derek Kaufman ( see 4 stories above this one)
Bob Pissant got it all wrong, his question should have been:
"How the fuck did you have one day of losses? Are you fuckin' useless?
You are given every advantage possible and you still fucked up!"
Fucktard.
SEC "Regulators" and the FED could give 2 shits about Virtu, Athena, BATS or any other HFT. As long as they are net long the market, it's playball monkey.
This is New York City whose police force murdered Eric Garner in public for selling a single cigarette...
The contrast is, literally, a 100% Black versus White, good versus evil. This evil cretin VIRTU CEO's head should be spiked on the Pike of Justice, his body thrown to a pack of coyotes. Why is that evil POS's head still on his shoulders?
Why do we allow the Elites to publicly celebrate the brazen parade of evil criminals on a daily basis, rubbing faces of everyone else in excrement?
It starts at the very top, in the White House, in the Oval Office, with LOTUS—LIAR OF THE UNITED STATES—a foreign criminal himself in league with the Muslim Brotherhood—directing that the United States Attorney General Eric Holder—another criminal in league with the Muslim Brotherhood—allow the criminals free reign to continue operating. As long as their courier Al Sharpton keeps receiving bags of cash payouts in their protection racket.
This CEO is a classic example of a criminal in action. To hell with any longer term consequences.
In a just society…well, this isn't. "A fish rots from the head…"
Dude, if you want anyone to believe it's anything other than cheating, you should at least say "guess we are just lucky," or even "strict adherence to witchcraft" because "law of large numbers" isn't credible to even high school math students.
Stop being a victim of big money scammers, multinational corporations and the government. Develop your personal leadership skills and start winning: http://www.x234.com/win
Instead of all these idiot conspiracy theories, does anyone actually have ANY actual clue about what the story is?
Virtu is a market maker. Is it that unheard of for a marker maker to not lose money?