How Financial Firms Actually Make Money

Has nobody heard of Insider Trading here?
That's before we get the politicians. Amazing how the higher you are in office, the more winning trades they seem to have!

I have never seen a profitable algo trader....... ......after over 20 years of trading.

Everyone is looking for their “get rich quick scheme.” Unfortunately, it doesn’t exist unless you consider fraud, and then you’re gambling with your life & freedom. 👍

From last 5 years i have used many option writing/selling strategies to make a consistent profit with proper hedging and a max VaR of 5% of my cap, even lost 5% on 24th feb 2022. What most people dont understand is these big firms face a liquidity problem, and thats why its difficult for them to find true alpha without risking too much

ive been trying to use historical options data (O,H,L,C, Volume) as well as other indicators to try to train a deep learning model to predict buying and selling seasons, does any one have advice or think im wasting my time?

Thanks for sharing 😀👍 greetings from Colombia.

true correct

Everything online is bogus. My online strategies are guaranteed to make returns. Just left there

Classic don’t buy other’s course but only buy mine.

Lee Jose Walker Lisa Williams Elizabeth

Hilarious video really

My biggest alpha has been finding your channel.

haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa🤣🤣🤣🤣

Beginning 2024, I think we'll start to see more market diversification. I'm hoping to invest about $300,000 from a recent home sale into the financial markets, but I'm still not sure how rates will effect the market just yet, which worries me a lot. Like how long will the bull rally last before the reset?.

What a fuckin waste of time.

It is insane he went from "Generating macro scale alpha with micro enhancements that you and I can comprehend is extremely unlikely" to "Here are 3 winning strategies!" which end up just being 3 ways to interpret brokerage lmao the irony.

Your classification only covers "Directionals" (investment banks, mutual funds, retails..etc feeding on fees) and "Non-Directionals" (MMs scalping bid-ask spreads ...). Why you left out so many prop firms with less than ten people who trade strategies sometimes single legged directional bets, other times two or multi legged. Or strategies that's arb by nature, prices, ob imbalances, or rates discrepancies. (MM can be an arb too). Fact traditional big banks and brokerages all fee based doesn't mean strategies trading are fake: Otherwise what are you doing as a researcher? But yea agree, it's just not easy.

very good vid

By 1min in— those other guys are fake and trying to give you something too good to be true, so listen to me and I will guarantee success 😂😂

What a bogus video, another person in the space with no fundamental knowledge

Brokers like Robinhood are sht, they sell your information to big institutions, they charge you commissions, they make money through forex, they buy shares from you and sell them to big institutions, and your lossess are broker wins. This Mf have to be regulated and cancel their license to operate in the market

I've become convinced 90% of the popular trading channels in general are all being funded behind the scenes to manipulate people into losing their money. Prop firms being paid by institutions like Citadel, as brokerages are paying Citadel for pay for order flow. The entire market is corrupt and designed to steal money from small short term traders. There's a reason besides taxes that most propfirms exist outside of the US.

thanks man, finally someone said that all straight:)

Hahha someone else will say it's is useless come buy mine... Life is a cycle

best channel

Skip the first 7 minutes.

The only ones who are really winning: Market makers and brokerage firms. The others are at the mercy of luck, with inconsistent wins and losses.

Newbes may become frustrated by this video ... but ... hes telling truth ...
Investors gain success only by developping strategies beyond well known infos and models. Total transparency causes no chance for mechanical/software-driven success.
First you have to learn all about common tools and strategies ... then you have to select and check ... then make a decision about your own strategy ... then check the markets for chances ...
Dont forget - the closer you stay at mechanical workflows, automated ones the more compettitors you get ... and the more you develop your own system the more risk you take until reality fits to it.

Another clown. Stopped watching after hearing "I will show you my 3 strategies that are guaranteed to make money". What a joke 😂😂

I want discussion on topics not mentioned in books like people on other side of trade and orderflow analysis

Johnatan how is it possible to transfer cryptocurrency to your account for HFT traiding under your control?

You never gave the retail trader an understanding of where his advantage may lie or how he could increase his chances of making consistent profit.

You never explained what Alpha looks like as an example so that your audience understands what Alpha is ?

Wow very good video, POV I didn't think of. So far from trading, I see that there a strategies that can help get that edge, but the best strategies are the ones that keep you in the trade longer while managing low risk. So for me (and this can change after writing this) that would be Supply and Demand, why? because that is literally what moves markets! Thank you for the video

Making $$$ by trading is not easy. Most people are simply "undercapitalized". Shortage of $$$. Shortage of equipment and understanding

What is this "alpha" of which you speak?

Don't waste your time watching this.

I like him. He simply says he don't know.

I HAVE INCURRED SO MUCH LOSSES TO TRADE ON MY OWN,I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED.

incredible....can tell by his office alone....

Algorithmic trading is useful to show possible entrance positions. Do not expect a bot will make hundreds not even thousands for you

Man I love this video man! you are truly good at explaining what a lot of people think is complex.

Is hft also profit on bid ask spread, are they market makers?

Unfortunately the entire adult world is just a money scheme for the rich. Read books, learn math, learn science and trust nothing.

Raspberry PI? Check, Under powered Laptop? Check. Cheap IKEA desk? Check. Self-titled Quant PhD? Check. Only 3 reliable strategies in the market? Check. Only YOU know them. Double Check. Not getting to the point? Priceless!

Algo is not about finding alpha, its about production of non correlated better risk adjusted returns to the market

The gold analogy is very good. And yes, nowdays alphas can't be found with a seive, they need to be studied with academic high-level data science approach. Just the same way these new gold mining machinery is designed and developed

Anyone can go and buy a top 500 etf on the stock market and make 10-20% per year, not even watching the market with almost zero minimum capital requirements. Therefore it is reasonable that someone who puts in effort to learn and apply a trading strategy can make significantly more like 100-200% per year. It is not necessary to have any fancy equipment and programming works just as well as machine learning