Magic City, a certain quantitative operation team.
In the employee area, rows of screens are filled with constantly changing K-line charts.
But there were not many employees present, only the servers in the computer room were humming with heat...
Why is it that today the market seems to be getting better and better, but it is getting harder and harder for investors to make money?
The answer is simple, stragglers will never be able to defeat regular troops.
In the past, institutions used professional traders to cut leeks, but now they use the program code of quantitative models to cut leeks. Times have changed, and cutting efficiency is higher.
When you think you are still in PVP and your opponent is a big guy in front of a computer screen, you don’t know that your biggest opponent is already a server...
And when you realize that you are in PVE, you will soon find in despair that your maximum hand speed is not even a fraction of the opponent's APM (Actions Per Minute).
Ordinary people challenging computers may be able to defeat beginner, advanced, expert, and even hell-level robots.
However, the next second, the programmer will tell you that there is no upper limit to the difficulty of the robot...
The only opponent of robots is robots!
In the future capital market, the opponent of quantitative trading will only be another quantitative trading...
"Mr. Wei, this...this is our income statistics for this week."
The middle-aged man in a suit and leather shoes, wearing Cartier, looking like an elite, drank coffee and casually took the report carefully handed over by his subordinate.
However, as soon as I glanced at it, the coffee in my mouth almost spit out.
"-6.2%!?" Mr. Wei's face turned green.
"Are you sure you're not kidding me?"
"This..." the subordinate said cautiously with a worried look on his face, "I have done the statistics three times, the data must be correct..."
"Pah!" Mr. Wei threw the report directly on the table and said angrily.
"Are you kidding me? I just went to Hainan for a week's vacation, and you're going to give me this kind of result when I come back?
I lost more than 30 million yuan in one week. How do you want me to explain it to investors?
Tell me, what was the company's weekly profit rate before I left?"
"On average -1%~3%, if you are lucky, it can even reach 5%..."
"What about now? Are we experiencing a stock market crash?" Mr. Wei said angrily, slapping the table.
The subordinate smiled bitterly.
"Mr. Wei, we didn't expect this. Everything else is fine. The main reason is that we suffered heavy losses on one stock."
"Huh? Which evil stock is so evil?" Mr. Wei picked up the report and read it carefully with an angry look on his face, and soon found the culprit who caused them heavy losses.
The green “-26.8%” at the back is unusually dazzling.
"Xu's Group?"
The subordinate gritted his teeth and said, "Yes, that's it. Most of our negative returns are on this stock. Even if other stocks have a slight profit, the overall loss will be greatly increased.
To be honest, not only our team, but also colleagues from several neighboring companies who have this stock on their plates are also lamenting that we are pretty good, and the quantitative strategy is not that radical.
I heard that Mr. Liu’s 50 million plate was immediately announced to be liquidated yesterday..."
"Hiss~" Mr. Wei gasped.
"What's going on with the Xu Group? Although the real estate industry is in a slump right now, the situation won't be so extreme, right?
Could it be that there is some unexpected and breaking news?"
"That's not true, except that the Xu Group has just issued a positive announcement about repurchasing shares, which shows that the situation is calm, and even the stock price has not fluctuated significantly.
But the evil is here.
Our quantitative model used to be fine before, but recently it has been showing negative returns for a week in a row.”
"Negative returns? What does the technical team do for a living? Since there is a problem with our quantitative strategy, why don't we quickly modify and maintain it?"
"We maintained it, but it would have been better if we didn't. If we maintained it, we would have lost more..." The subordinate smiled bitterly.
Mr. Wei stared blankly for a long time before forcing himself to calm down.
"Have you found out the reason?"
"Well... although I can't be sure, looking at the trading volume, this stock should have a new heavyweight quantitative player, and the trading funds mobilized are at least 1 billion and upwards."
"One billion?" Mr. Wei was stunned for a moment.
This amount of funds... is not too much, but too little!
You must know that Xu Group is a listed company with a market value of nearly 100 billion, with more than 30 billion in circulating shares alone.
According to the standard of 30% for mild market control, the amount of funds must be at least 9 billion.
A person with a capital of 1 billion can only be considered a big player at best, and is far from the level of a banker.
In nature, quantitative trading is the use of short-term high-frequency operations to obtain large spread profits.
Its profitability depends not only on the excellence of the quantitative model, but also on the amount of funds.
Big fish eat small fish, and small fish eat shrimps, even for quantitative teams!
"That's it, are you going to beat us to the point where we can't find anything? We have a technical team that has tens of millions of dollars every year, and just a cat or a dog can knock you down?" Mr. Wei said angrily.
"This..." The subordinate was speechless.
Our team was not the only one who was killed. It was almost like killing someone who was wrong and not letting go. They would die if they touched each other, and they would die if they were next to each other...
This opponent is quite speechless.
In their circle, they used to play PVE very well, and it was great to cut leeks.
Who would have thought that someone from EVE had infiltrated the scene, and it seemed that he was here specifically for them. Instead of cutting leeks, he just chopping melons and vegetables for them.
Although he is an opponent, as a technician, he has to accept it. Or how can one say that a skilled person is bold.
With a capital of 1 billion, he knocked a group of quantitative teams to the ground and rubbed them.
That means that the other party's strategy model is already good enough to offset other people's financial advantages to a certain extent.
No matter how you look at it, this is not an easy person to mess with...
"Well, Mr. Wei, although I don't know who this mysterious player is, he seems to be only interested in the stock of Xu Group.
The advice of our technical department is to stop losses in time, avoid this stock, and re-adjust our quantitative model."
"Stop loss? A loss of more than 30 million. How do you want me to write a year-end report to shareholders?"
"But... there are so many leeks on the market, we can't hang ourselves on this tree."
"It's nothing, there are thousands of leeks, I just have to cut this one today!
Humph! A mere billion-level player is like a dragon crossing the river. Even if he reaches our Huangpu River, he has to peel off his skin before leaving!"
Mr. Wei is indeed confident in saying this. Even though their team size is only average, the people who invest behind them are not ordinary people.
If you pick anyone out at random, they are all prominent figures in the Yangtze River Delta.
Even Xu Jinsong from the Xu Group can be considered a member of the same circle.
As far as this stock is concerned, it is definitely their home field. They have the final say whether to release good news or bad news, and they are not afraid of the other party making a fuss about it.
He immediately took out his mobile phone and sent a "Jianghu Summoning Order" in a chat group called "Qilin Club".
That night, the heads of dozens of investment institutions secretly stayed in the most luxurious private club in Shanghai and did not leave until the early morning...
…
Just after 9:30 the next day, Gao Yuan, who was checking the company's development information, suddenly received a reminder from Ling.
"What? The strategies of dozens of quantitative teams have converged..."
Gao Yuan looked slightly stunned, then thought for a moment and then came to her senses.
This is a one-on-one defeat, so the six major sects are besieging Guangmingding...
If you can't beat EVE, just play EEEEEVE!
This was because she was a little negligent. She was focused on dealing with Xu Jinsong, but she didn't expect that the movement was too big and it actually affected Chi Yu.
And those big fish and small fish who were affected were obviously a little dissatisfied with themselves, the new players who had wandered in...
"Trouble?"
[It’s troublesome to say it’s troublesome, but it’s even simpler to say it’s simple.]
"Oh? How do you say that?" Gao Yuan asked with interest.
[The trouble is that with the amount of funds of the other party, it is difficult to shake the other party with ordinary trading strategies. Whether it goes up or down, the other party basically has the final say.
Judging from the current situation, it seems that the other party wants to take advantage of the benefits of Xu Group's share repurchase to increase the stock price.
Xu's Group's stock opened higher this morning. The current stock price is 21.9, an increase of 4 percentage points.】
Gao Yuan nodded, no matter how excellent the trading strategy is, it is just a matter of using technology to win.
When the opponent's weight is too high and exceeds a thousand catties, your four ounces will not be able to move it.
"So what do you mean by simple?"
[The simplicity is that our biggest opponents have changed from dozens to one, which makes it easier to predict.
And I have used the other party's transaction data to reversely deduce the other party's trading model, thereby finding the other party's trading loopholes.
Do you remember the British trader named Navinder Singh Sarao that I told you about?]
Gao Yuan was stunned for a moment, and the corners of her eyes twitched slightly.
"You mean...Flash Crash?"
【The answer is yes.】
"How far can it be achieved?" Gao Yuan's eyes showed a hint of excitement.
Unlike a certain behind-the-scenes boss with a wild name and relatively conservative strategies, Gao Yuan, who seems to be extremely steady in her work, has always had a restless heart.
[I can only say that the limit on the maximum price limit limits my performance.]
"Hmm...arrogant! But I like..."
…
Magic City.
"What did the other party do?"
Only one day later, the panic was no longer visible on Mr. Wei's face, and he regained his calm demeanor. He was leisurely sipping coffee in front of his subordinates, his eyes full of confidence.
With the entire technical team, his employees were currently staring intently at the constantly fluctuating disks on the dozen or so screens in front of them.
"Not yet...wait! There is!"
Mr. Wei leaned forward slightly.
"The other party...the other party is selling off the chips in his hand very quickly! In just one moment, he has sold out 30,000 hands, amounting to 60 million!"
On the fluctuation curve, the stock price was visibly falling, but soon it was slowly pulled back...
"Mr. Wei, our strategy is to be bullish, and the quantitative model is constantly taking in the chips thrown by the other party to maintain the stock price!"
There was some sweat on the trader's forehead and his fingers were trembling.
It's a pity that he usually only manages 30 to 40 million in funds at most, but today's big event can be regarded as the pinnacle of his life.
"Let him throw it, ha! Does he think that after throwing away the chips in his hand, he will have a chance to get them back?
Let me continue to drive up the stock price. If the other party just leaves, then that means he is interested. If he still wants to buy in, then throw it away with my backhand and let the other party take over at a high position!
I will tell him today that in the face of absolute strength, all resistance is in vain!"
The stock price continued to hit new highs due to the influx of huge amounts of funds, and soon reached a high of 22.6. It continued to rise as soon as the market opened in the afternoon, and the increase soon touched a high of 8%. It seemed that it was about to rise again.
The daily limit shows you the posture.
However, just when Mr. Wei saw that the other party had not taken any action and thought that the other party had finally given up, the stock price suddenly began to fall slowly again.
It dropped from 8% to 7% in just a few minutes.
"What's going on?" Mr. Wei frowned.
The technicians quickly made several calls and responded quickly.
"Mr. Wei, someone is shorting this stock through securities lending and options. It should be the other party's handiwork!"
Mr. Wei looked stunned.
Damn it, not only did you throw away the chips in your hand, but you actually went short with your backhand, how confident are you in yourself?
However, without waiting for Mr. Wei's reaction, the stock price slowly pulled back by 8%.
Obviously, it is their quantitative strategy that continues to make gains.
“How much funding have we used so far?”
"About 30%." The trader replied immediately.
With enough bullets, Mr. Wei immediately felt relieved and sneered.
"Ha! Okay, okay, you won't shed tears until you see the coffin, right? Pick it up for me, we will eat as much as they throw at us, and push the stock price to the daily limit!
I want to see how much capital they have left to fight against us!"
In the face of "absolute strength", the stock price on the market is like a rocket, heading straight for the 10% daily limit!
Looking at the rising stock price, Mr. Wei finally showed a proud smile.
In this wave of daily limit, the other party will have to lose at least about 2%. Do you think this is the end?
As soon as the market opens tomorrow, he can directly raise the daily limit again, or even raise the daily limit several times in a row!
You must know that securities lending and options are leveraged. If you place a loss of more than ten points with the other party, you may directly lose half of your principal.
No matter how courageous the gambler is, he will probably turn pale with fright at this time, cut his flesh and run away.
And the biggest winner is undoubtedly them who ate the other party...
This wave must bring in at least several hundred million, which is great!
"Hey! They were smart today. They knew that their arms couldn't twist their thighs, so they didn't even use quantitative models to compete with us.
Mr. Wei, you are so superb in your methods. You can defeat ten enemies with one move, and you are able to make this difficult opponent miserable and defeated."
Seeing that Mr. Wei was in a good mood, his subordinates immediately slapped him with flattery, which made Mr. Wei's chubby face smile even more.
It's almost 3pm and the stock market is about to close.
Before Mr. Wei could decide whether to open champagne or Maozi for the evening celebration, he just glanced at the screen inadvertently...
"brush!"
A straight green pillar suddenly appeared in the retina without any warning...
Mr. Wei's smile stopped abruptly.
His eyes were wide open, almost popping out of his head.
Immediately, he rubbed his eyes vigorously with a look of disbelief on his face, and then continued to be stunned.
The whole person just had his mouth open, as if he was petrified and motionless.
Others also noticed Mr. Wei's abnormality, looked at the screen in confusion, and then...
A group of stone sculptures of the same style appeared on the scene.
"What's going on? How could it drop to the limit in an instant!"
After reacting, Mr. Wei grabbed his subordinate's collar and shook him wildly.
Flash crash! This is the first time I have seen it in my life!
But I don’t want to witness this kind of history!
There was a trader on the side who was hurriedly checking the background data, and suddenly broke into a cold sweat.
"Wei...Mr. Wei! It's...it's our quantitative model, and our quantitative model is selling like crazy."
"What?"
Mr. Wei, who thought it was his opponent who was squandering the order, suddenly turned to stone again when he heard this.
I thought my opponent was too cruel, but it turned out that the murderer was myself?
"What's going on? Our model is crazy?" Mr. Wei roared.
"No...no, it was someone who kept misleading our model with huge amounts of pending orders, causing our model to have the illusion that the stock price was collapsing, and that's why we sold like crazy.
Because the speed of placing and canceling orders was so fast, the stock price hit the limit in an instant.
The opponent...the opponent seems to have found a loophole in our model!"
"What?!"
Mr. Wei is completely Spartan, and he still operates like this!?
Life is full of ups and downs.
Just when you thought you were in EVP, someone quietly switched you back to EVE, and by the way, you felt what despair is...
Yes, your own funds have an absolute advantage.
However, your opponent tells you what absolute strength is on another technical level...
"Then why don't you quickly close the model and switch to manual operation! Then bring the stock price back to me!"
Before he could be shocked, Mr. Wei roared angrily and tried to make amends.
Calm down, as long as your own funds still have the absolute advantage, then the limit drop will only be temporary...
When the stock price falls, I still have to figure out how to come back.
However……
"It's too late. The other party took advantage of our mistake and closed all the previous short positions. We have already generated a huge amount of transactions near the limit..."
The next words the trader said with a sad face made him fall down on his chair, as if he had fallen into an ice cellar.
It’s over…
It's all over...
"Click!"
At this moment, the hour hand on the wall jumped and pointed at three o'clock...