$25 Million A Day

This is a discussion on $25 Million A Day within the General Trading Chat forums, part of the Reception category; Originally Posted by timsk What we all wanna do is to copy the guys 'n gels at GS who didn't ...

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Old May 10, 2010, 11:12pm   #8
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Re: $25 Million A Day

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Originally Posted by timsk View Post
What we all wanna do is to copy the guys 'n gels at GS who didn't have a single losing day in the first quarter of the year according to this article on Bloomberg.
Goldman Sachs Has First Quarter With No Trading Loss
Well, I guess they'll be needing every cent to help pay their legal expenses!
this is nothing. medbs discovered 100 pct successful trading a while ago.
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Old May 11, 2010, 3:53am   #9
 
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Re: $25 Million A Day

Well - if you co-locate a server at the exchange, see orders coming in before they hit the exchange and front-run them - how exactly would you have a losing day ?

If you tell me Goldman are making money every day and not having any losers, we can come to the following conclusions.

1 - Goldman are clearly NOT using the techniques that any member of this site uses
2 - In all likeliness Goldman are abusing the system

Anyone that thinks they are just good at interpreting price action is a fool
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I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

Humphrey B Neill - 1931
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Old May 11, 2010, 4:10am   #10
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Re: $25 Million A Day

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Originally Posted by DionysusToast View Post
Well - if you co-locate a server at the exchange, see orders coming in before they hit the exchange and front-run them - how exactly would you have a losing day ?

If you tell me Goldman are making money every day and not having any losers, we can come to the following conclusions.

1 - Goldman are clearly NOT using the techniques that any member of this site uses
2 - In all likeliness Goldman are abusing the system

Anyone that thinks they are just good at interpreting price action is a fool
They are abusing the system every which way they can with the SEC's blessing. Of course both the SEC and FED employ many ex-Goldman executives. Just a coincidence I'm sure.

Peter
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Old May 11, 2010, 6:51am   #11
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Re: $25 Million A Day

you're all mugs. jesus. goldmans is a market maker, in general they're onside as soon as they trade with a counterparty.
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Old May 11, 2010, 8:14am   #12
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Re: $25 Million A Day

They're doing God's work, and I'm sure He is happy with their achievements.

But seriously, not ONE losing day? It's beyond the realms of probability. Let's say you have a 95 pct chance of making money on a given day, then the chance of NO losing days over 62 days is 0.95^62 = 0.04, thus 4% chance of no losing days in a quarter if you have the (simply astonishing) probability of 95 pct for making money. Ok, my arithmetic here is a bit crude, but you get the idea.

In fact, it's not until you get to 99 pct chance of making money that the odds for a no-lose quarter rise to 50 pct.

Ok, so they're market makers so it's more a case of capturing bid/ask rather than taking proprietary risk per se. But nonetheless, it's a mindblowing statistic.
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Old May 11, 2010, 10:21am   #13
 
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Re: $25 Million A Day

What makes you think they are trading directional strategies as a large proportion of their trades ?

They are an MM - but it seems that being an active MM is going out of fashion right now, this is probably the fault of those pesky HFT algos.

The problem is - people tend to think within their own domain. Of course, within the domain of any member of this site, 3 months without a losing day is exceptional.

Given quite a few billions, the ability to manipulate prices and to step in front of trades and then it doesn't seem like such an outrageous proposition.

Of course - limit Goldman to MACD, stochastics and a moving average crossover to trade off and their performance may deteriorate somewhat.
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I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

Humphrey B Neill - 1931
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Old May 11, 2010, 10:27am   #14
 
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Re: $25 Million A Day

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you're all mugs. jesus. goldmans is a market maker, in general they're onside as soon as they trade with a counterparty.
At last. An accurate statement on t2w.
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