Money Bots | High-Frequency Trading | Scam | Full Documentaries
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- Money Bots - In high frequency trading the fastest data network makes the deal.
Money Bots (2020)
Director: Friedrich Moser, Daniel Andrew Wunderer
Writers: Martin Ehrenhauser, Friedrich Moser
Stars: Haim Bodek, Doyne Farmer, Jürgen Klute
Genre: Documentary
Country: Austria, Germany
Language: English
Release Date: March 22, 2020 (Germany)
Filming Location: New York City, New York, USA
Synopsis:
Time is Money. In high frequency trading the fastest data network makes the deal. Computers trade against computers solely committed to the logic of their algorithms. Essentially, they are warring bots - money bots.
In the beginning, the intention was to use greater predictability and faster infrastructure to increase the stability of financial markets. In fact, the opposite has occurred: automation has made them more vulnerable. Moneybots love instability, where the greatest profits are to be made, and high-frequency trading is damaging the real economy. When trades take place in milliseconds, traders in the real economy are kept out of the loop. The system often relies on the discovery and exploitation of ‘cheats’ to get around restrictions.
And, as with all electronic systems, the moneybots can be hacked. Already there have been cases of flash crashes that destabilised the world’s markets. How did it come to this? We go back to their roots in the casinos of Las Vegas, where young mathematicians and physicists created algorithms and the first wearable computer to outsmart the roulette…
Also Known As (AKA):
(original title) Money Bots
Austria Money Bots
Finland Tietokoneet pörssimeklareina
Finland Ulkolinja: Tietokoneet pörssimeklareina(series title)
France Les robots traders, la finance à haute fréquence
Germany Die Geldroboter
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"If it sounds too good to be true, it probably is" has served me so very well.
Not sure why you say that. Auto-trading is still alive and kicking, and people are still making fortunes using this method.
@JAMR0716 its just an old saying that so many people believe in because it applies to so many things in life. Yes some people have made a lot of money using it but more people have lost than made money.
@@JAMR0716 +1 here.
It is called front running. That's how the Rothschilds became rich. Mayer Rothschild worked as a court agent, much like today's stockbrokers. His main client was Prince William of Hesse-Kastle. Whenever William wanted to purchase gold coins, he would ask Mayer Rothschild to obtain them from the market. He would first buy the coins using borrowed money, then sell them to Prince William, effectively acting as both the buyer and the seller. This practice is known as front running in modern terms. In doing so, he profited twice, once from the 8% commission fee, and also from front running, Prince William. By 1782, Mayer Rothschild has amassed a colossal fortune and earns the position as the investment manager for Prince William's vast wealth.
It was narrated that Hakeem ibn Hizaam رضي الله عنه said:
"I came to the Messenger of Allah ﷺ and said: 'A man comes to me wanting to buy something that I do not possess; should I buy it for him from the marketplace then sell it to him?' He said: 'Do not sell that which you do not possess.'"
[At-Tirmidhi, 1232; An-Nasaa'i, 4613; Abu Dawud, 3503, Ibn Maajah, 2187, Ahmad, 14887. Classed as Saheeh by al-Albaani رحمه الله in Irwa' al-Ghaleel, 1292]
Narrated Tawus رحمه الله:
Ibn 'Abbas رضي الله عنهما said: "Allah's Messenger ﷺ forbade the selling of foodstuff before its measuring and (before) transferring into one's possession." I asked Ibn 'Abbas: "How is that?" Ibn 'Abbas replied: "It will be just like selling Dirhams for Dirhams (same currency for same currency i.e. Riba Al-Fadl), as the foodstuff has not been handed over to the first purchaser who is the present seller."
[Sahih al-Bukhari » Sales and Trade - كتاب البيوع » Hadith 2132]
It’s funny hearing them talking about the Dow being down 200 points back then as catastrophic. Now it can move 200 points in a minute or two and it’s just an ordinary day.
Well index is alot higher now, have to go off percent
Not rly, think of the ratio...
You missed the point of ratio completely
Could you be thinking of the NASDAQ? YM isn’t as volatile as 200 pts in a minute, is it?
execpt he said 1500 pts not 200.....
The thing about money is that when you have enough of it you can buy opportunities to increase your wealth, sometimes exponentially.
like what oppourtun8ties ?
@@gullybull5568 contribute to congressional campaigns for special favors, purchase profitable businesses, rub elbows with other rich people, invest and more.
If you live paycheck to paycheck or even just middle class you will not have these opportunities
@@gullybull5568the luxury of PATIENCE is one.. many small traders lose because they cannot wait out a bad market.
and it's a fact what they say:
IT TAKES MONEY
TO MAKE MONEY
That "lone Trader" in the UK theyre referring to has to be that Indian kid who made a fortune playing the order books and ultimately got arrested. funny how hedge funds can do it but when its an individual they get slammed with the hammer
True😮
navinder singh sarao
it has to be yeah.
name?
@@DONTHAWONN navinder singh sarao
He is describing exchange arbitrage, where you buy in one exchange and sell on another while price has not been updated. Do this at the speed of light, and you make profit, but it also creates a "flash crash". The rest of traders get the worst execution possible due to high frequency orders being filled at light speeds. Whose at fault? The exchanges, brokers, investment banks for filling orders at high frequency speeds. They are obviously aware of this but it's a round business for them. There won't be "regulation" unless there is a high demand for it, most people are too lazy and unaware to even do anything about it, just like he mentioned.
This is not only arbitraging. This is spoofing (making fake orders) and is illegal in Europe
Electricity, the drift of electrons, moves at a few tens of miles an hour, in the 80~130 mph range.
Electric signals in wires, shock waves between electrons, signalling a change in the pressure of current upon them, moves at around 0.7~0.8 of the speed of light.
Radio waves in a vacuum, if such a thing existed, would travel at "the speed of light," as would light.
Nothing nowhere, not even anything electric within matter, moves "at the speed of light."
@@TheDavidlloydjones Incorrect, but keep on reading Wikipedia.
Fiber Optic cable...
"Dad, I figured out Wall Street's trick. I'm gonna be rich!"
"Son, Wall Street can create new tricks faster than you can figure out the old tricks."
Robots first went for blue collar jobs, now it's white collar's turn😂
No arbitrage is completely risk-free. Not even for high frequency trading machines. It's just that the potential for loss is less than the potential for profit.
in the crypto trading world they can be next to risk-free with flash loans. Also there is still less competition from major players than in the traditional finance market. So the cut of the profits you can expect might also be larger.
Brilliant stuff. Definitely subbing and hope to see more information on the scams infecting our society. Thank you!
so,basically they are spoofing the market. The big guys always get away while retail traders will always take the blame..what a shity market
There is a reason why they are the big player.
You need to have a winning strat to become and stay a big player!
This was my first thought as well. I don’t know about the US but spoofing is illegal in Europe
@@achill_934 Spoofing is illegal too, but often falls under the radar as it can be very hard to detect.
@@achill_934in US too, but it is largely used, if they don't get caught or if they get caught, many years later, the fines are just fees for doing business, they pay and move on... Continuing the scheme on and on
lmao what a shitty thought.
someone once said trading is world where you as ordinary beginner should be aware that you're coming to take money from very smart intelligent people. This documentary proves it, to imagine that a handful of guys have an added advantage in the market because they were smart enough to invent a moneybot that is a cash cow , be it a hedgefund, be it an individual, well and good for them. So you as a small retail trader should have known this
the solution is to do away with derivatives. First, the issue according to this documentary is options contracts. those that know these contracts are aware of their leveraged value and the fact that the future value is determined by a complex formula comprising in part by volatility and time to expiration. Second, dark pools must be dissolved. Dark pools are how the elite make money over the everyday trader, they basically get to trade in secret only to be revealed the next day, this is akin to a poker player getting to see every 2nd card of the next 10 cards in the deck. Of course none of this will ever be fixed. Those that make the rules and those that enforce them are paid off by those that benefit from circumventing them or exploiting loopholes that have purposefully been put in place for them.
Derivates markets are the oldest form of markets and trading. They are essential for anyone in business and are not going anywhere. Is it the gun or the gun owner?
Anyone can setup a grid bot today. That's how you make money. You define a set number of entries to sell and buy at the same time and profit from the volatility. Then you define a stop and more advanced bots can even trail up the parameters of grids indefinitely and do the same on the bottom a trailing stop-loss.
Essentially you can become a market maker this way. 😂 No need to do anything shady
Very ignorant take. Getting rid of derivatives would eliminate all forms of financial risk management. It literally CANNOT happen without sending us back to the stone age. While I'm not a fan of dark pools, your understanding is wrong and your example is false.
Moconomy coming through with another classic!
What other classics have they put on here?
I've just found this channel and want to find them
@@theprince1795 The dirty mobile phone industry...
The guy (Haim?) is the first person from the finance industry I ever heard speak reflected and in their conscience and in a human manner. It's good to see he at the end made it to a job where he can really use his potential in research.
no matter what technology will come the old boys will never ever be replaced in real world in financial services industry
Which old boys
@@Peterheaven64 I think they mean floor traders...... 🤷🏻♀
This whole "industry" is disgusting and should be illegal.
illegal? dude they are the system 🤣
With business sectors tumbling, expansion taking off, the Fed impressive enormous loan fee climb, while depository yields are rising quickly, and that implies more red ink for portfolios this second half of the year. How might I benefit from the ongoing unpredictable market? I'm currently at an intersection choosing if to sell my stock portfolio.
Since the market is currently volatile, I will recommend that you hire a financial adviser who can advise you on entry and exit points for the shares or ETFs you focus on
You are right! I've diversified my portfolio across various markets with the aid of a financial adviser, I have been able to generate a little bit above $450k in net profit across high dividend yield stocks, ETF and bonds.
Please how can i get to reach out to your adviser?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've been stuck with *KAREN* *MARIE* *GENDRON* for about five years now, and her performance has been consistently impressive.
Thanks for this. I just googled her name and found her webpage. I'm really impressed with her credentials and I reached out to her since I need all the assistance I can get.
Arbitrage is the simultaneous purchase and sale of an asset in different markets to exploit tiny differences in their prices
Well explained.
“Flash Boys” by Michael Lewis
Flash Boys is about one man's effort to level the playing field in HFT.
Badass Documentary
The captions near the end do not match up with what is being said or talked about. But other wise is interesting insights into the exchanges and how the deal with hft!
That was really weird! 😮
This makes me question all the translations.
Alladin from blackrock is hft. Basically market manipulation became normalized ever since then
I can only imagine what happens today and will happen in the future with AI taking over the trading business
simple solution, force stocks to be owned for 1 minute. that's within human daytrader systems i assume...right?
High Class Documentary. Very cool speakers.
Fascinating, I just discovered your channel now I am an instant fan and look forward to watching more!
Welcome aboard!
Same!
This is Straight up the real ""person of interest" character
the money didn't go poof... for every seller.. there is a buyer, else the market would not move. this is a wealth transfer. Its really is a zero sum game
but with an inexorable upward trend due to ever increasing money supply and inflation.
Remember the bots can places orders at the speed of milliseconds so by doing so with high amout of shares. It can profit large amounts of money in no time.
@@AltonMorgan77 true, but they are simply gaining the fractions of a cent on each trade. Someone likened it to sweeping up nickels with a bulldozer.
there is no buyers or sellers it is all an ilusion inthe world of trading and the one who create that ilusion are the ones who are profitng from it and the are the loosers like
Towards thd of the video, the subtitles dont match at all with what is being said. Why is that?
The money NEVER JUST DISAPPEARED, it went to someone else's account.
Superb video, but there are issues with the subtitles very out of sync in last parts.
Did you write the whole thing with chatgpt?
Excellent, 10/10. I did not want it to end.
Vicious begets the same. Respect has its merits and the users are spared. Prediction has many Conditions. The winners will receive but the game can only end slight. The real vision remains, time has become unhinged from space where the path sits in an endless cycle. There might be more substance in a silent dream. The whole of it resembles an abyss and we know only as we see the other side.
Beautiful. Thank you for sharing this. Your creativity is astounding. Take care my friend.
Incredible how speed and technology can impact financial markets! High-frequency trading is truly a game of milliseconds. 🕒💰
Roulette…. You do not roll the ball the same direction the wheel is spinning. Drives me nuts as soooo many ‘journalists’ get it wrong.
Trading is hard frustrating and exhilarating simultaneously.
only is you are new.
It's actually really easy and boring.
@@LarsLarsen77 changing market conditions keep making it hard. The key is adaptability. I found it easy too when i first started but now the market conditions have changed so much. Had it been so easy, this is what everyone would have done in the comfort of their own home. Yeah it might get easy over time as you gain more and more experiences and knowledge but it'll take a long time, maybe 4 or 5 years. I trade options and sometimes I notice some weird stuff as well. If i buy a call premium and then if a red candle appears, price of my call premium should go down but instead longer the red candle grows, the more the call premium keeps appreciating and then if a green candle appears, the call premium starts depreciating. I've not been able to fathom out why it happens.
@@LarsLarsen77 had it been so easy, this is what everyone would've done in the comfort of their own home. Changing market conditions keep making it hard. The key is adaptability. I sometimes notice weird stuff as well. I trade options. So if buy call premium and a big red candle opens, the call premium should go down but instead longer the red candle grows, the more the call premium keeps appreciating and then if a green candle appears, the call premium starts depreciating in value. I haven't been able to fathom out why it happens.
@@LarsLarsen77easy and boring ...hahahahaha... seriously 😂
Yes I have seen this 1st hand in price action. It’s so fast that humans can not effectively participate in the majority of the move. The moves are meant to be hidden - It’s the stuff “THEY” don’t want you to know. I can also understand the apparent laziness of the large banks, pension funds. They often offer out that money management function to small specialty shops based on their track record in a certain slice of the portfolio.
Ten accounts linked up on one computer can do a funny at any time to this day
i think this for binary options you pointed out something that was eating up my mind
Bender (Futurama) : 🤖"Bite my shiny metal a$$ ! "🤖
I noticed a difference in trading since AI became available. It can instantly see an individual trade and run it down to stop loss. I have found I can box it in with a butterfly trade until it is forced into a breakout. Doesn't always work, but it has brought up my win rate back to profit levels.
Gold standard Documentary, thank you
Glad you enjoyed it!
Your video helps me learn new trading strategies and approaches. They are always very practical and applicable in real trading.
Great to hear!
45:27 "Large areas of financial economies actually have nothing to do with real economics anymore. However, the other way around, the recent economics crises are caused by the financial industry itself."
New fears unlocked
This is the business model of Robinhood. Take the order flow from retail investors and then screw them by front running their trades.
Frontrunning is illegal and that's NOT what they do. Time to revise your opinion
They don't want to stop the abuse, they want to become the abuser. It's all about power.
...
Hhh
Error 404
HFT is not a scam.
It's Japanese Financial modelling.
It WAS a thing a repute worldwide in the 90s.
But this was because Japan was/is Phenomenal at it.
💯
Unbelievable how this is not a criminal offence
peculiar fail with the subtitles at 49:00, hard to say what happened, maybe they were just timestamped wrong, or maybe the video editor cut out a french segment
Front running everyone.
Im happy most boomers dont believe in stock market and did way better than their kids so far
Weird comment
It was a bit new for traders, but, bots started in the early 1970s.
Is this author's Post revisiting very popular algorithms developed in the 1960s then implemented in the 1970s?
Bots basically closed down the NYSE and The London Stock Exchange for the reason I stated here.*
Citation: Wall Street Journals, 1960s through 1970s.
World Book Encyclopedia, 1969.
Multiple Topic listings.
front running is illegal, right?
It is, but HFT generally isn't considered front-running. Front running (as defined by the SEC) is trading on non-public advance knowledge of a large incoming order. The HFT dorks don't have advance knowledge of orders, they just have faster connections and can get an order out right after the retail order hits the first exchange quickly enough before the retail order gets filled. It's a question of internal speed and latency. What the HFTs do is take advantage of the fact that they pay millions of dollars in server rack space leasing fees to put their black boxes next to the black boxes that the stock market runs on, essentially. Basically, it's buying faster access and then quickly stepping on your toes to make their 1/2 a penny or whatever it is now. Real honest business ya got there, boys... wow... I mean, pathetic really if you think about it: this is what finance has become.... they can't make an honest buck by doing anything, well, honest, so they have to trick retail investors and make a piece of every trade. What a joke. HFT should be illegal, despite the "we provide liquidity which democratized finance" BS lines that they love to throw around ever since 2020 or so..... I personally think they're quite dumb and full of hubris. There is nothing honorable AT ALL about this type of "trading." It's manipulative, insidious, and basically theft....
@@ScottAllenFinance so one doesn't need a brain to get rich then...banks use our deposits to buy servers and the right locations to achieve HFT...
HFT firms buy retail order flow from brokerages…they arbitrage the order, take or close a position, or send the order back into the market. This process erodes liquidity..making the overall market more fragile setting the stage for massive selloffs in the future.
Prop firms don’t allow HFT
@@IceDogXena What does this even mean?
Do you mean "prop firm" as in those fake gambling houses? No one at a fake "prop firm" (or chop shop as I like to call them) is smart enough to even do HFT, and they definitely don't have the infrastructure. Those guys don't make real money.
Or do you mean a real "prop firm" as in an actual proprietary trading firm? Plenty of proprietary trading firms have HFT strategies in that case.
how is bidding for more than you want not spoofing? talking about strategy at 29:50. parasitic, perhaps illegal.
definitely illegal, several people have gone to jail for that. Individuals can do this from their own computer.
So you mean to tell me my insecurity of what I saw on the screens to this day from when I started on Forex in losing $200 in minutes back in 2016 moving extremely fast was validated in that these people were using bots and I was right to think to use bots too?
Try being at the center of the GME pop
Sounds like the episode on leverage. Knew the outcome of the horse race before the bet. Had a video delay so the better saw only the beginning time the ending was predicted in real time.
22:22 Wow. That's J Doyne Farmer.
most enjoyable documentary ever I seen in my whole life, please just keep make great documentaries about market and trading. ❤❤❤
We will! Thank you.
Cantillon effect, literally.
1500 points is childs play. There's volatility way beyond that nowadays
Awesome video. At min 48 ot smth, start some subtitles that have nothing to do with the video.
Thanks for the tip!
Great documentary
I stopped watching when he said at 3 PM local time while showing an aerial video of a city at night. Focus.
You stopped watching because of that?
God knows how you made it through life without ever accepting something not being perfect. Although I wouldn’t be surprised if you didn’t get far.
Yes bots work but they will not work if you keep eye on them which is more frustrating than human trading
These talks will not end until market is allowing to make such money on share price speculation. To stop that, market have to change stock management itself It have to be stocks divided to 2 groups: ownership shares and investment shares INVESTMENT shares have to be treated us money borrowing document. Company is borrowing money from private investors by printing and selling investment shares. It is easier way to borrow money comparing to Bank money loan. In this case Company suppose to guarantee burrowed money return with dividend, so not every company would be able to print investment shares. Sadly, these changes will not come from the side of USA or Britain, because these countries are so much financially benefitting from today speculative market (I would say, that it is speculative financial crime). Hope, that dominating math cheating will end.
So it is true that Robots will taking over the world
2000 billion dollars? Uhh, you mean 2 trillion right?😂
😂😂😂
Facts I was like what???
It is very common to use numbers that way, so you can grasp them better. It is easier to understand 2 million millions than 2 trillion.
For example, you live in a city with 2 million inhabitants, now imagine each of them is a millionaire. Now you take every penny of all those people (remember, in this scenario, every 3-year-old kid has a million). That visualizes much better how fricking much 2 trillion is. They chose 2000 billion, but there is nothing wrong with that.
ух ты! надеюсь у тебя все будет получаться)) удачи чел)
So this bro literally played the game himself, lost miserably, and cried like a sore loser?
33:44 that what made financial depression and crisis that hit so much.
Algos let take their money once you make so much trading the money is irrelevant bc you become your own mint
Every interesting stuff in here
This would be so easy to solve, but clearly the influences are impeding it
And how would you easily solve it?
@@BLESSED1591stop the use of automated arbitrage trading
@@BLESSED1591 Exchanges can set a minimum time unit for transactions to be processed, lets say 0.5 seconds, that ends HFT
Sounds like a breech of privacy too
WE GOT THE BEST TRADE STRATEGY!!!
In the last 5 days I have been DM'd this video by like a hundred people, lmao
This is ludicrous. Wtf has this go to do with the “informed and rational” allocation of capital to industry and enterprise? Absolutely nothing. It has to be banned.
the disaster was caused due to people saying "thousand billion". it's called "trillion".
ps, a thousand trillion is called quadrillion.
quintillion sextillion septillion octillion nonillion decillion.
Wonderful video!
Thank you! Cheers!
I hated not being able to read to translation french could read print is blory hard to read
I caught that also lol referring to 2000 billion dollars
It's funny that HFT bots hold trades for mere seconds and yet take money from people who invest with days or weeks in mind
I like how the clown who basically commercialized high-frequency trading is trying to insult it by saying "it's there for no good reason and it's just supposed to make the rich richer" when he literally sold it to a company for 100M. Unbelievable.
Don't see the contradiction here.
I understand what you mean, but I think you re confusing the gun dealer with the shooter here.. Which is just probably not so good of an example, but you know what I mean.
Lots had to change for the the things to stay the same
Thanks.
Trading and gambling are one and the same. Do it long enough, you might get good, if you get lucky, you might make millions. Although take the keywords might and luck very seriously 😂
The old boys club adapted.
Why isn't it banned we don't know
More like we know but the regs are bribed
what a big lie, anyone with any experience at all knows the tick flow at most times of the day for any vehicle you like is quite slow and positively stagnated. The velocity of the price movement is dictated by the trades and so the high frequency, rapid trading of a program has no value if the price has not moved, so it too has to wait until the price moves. The trading bot cannot make the price move no matter how frequent and quick it executes.
This is like cinema☺️👍
Come on guys it's funny but not really. This is real money in the end and Real messy consequences
Enjoyed this !
26:06 is this a jail?
this is crazy can you make money in the market or not so many information out there
This crap should be 100% illegal in the first place.
Your subtitles have been hacked
00:20 ‘2 thousand billion dollars’ 🤔🙃🤷♂️
You must only know how to count in American English. Good thing your country is declining. It'll blow your mind to figure out what an Indian lahk is.
we need the name of the bot guys :)
Ong
Why did the data map show Washington D.C. connected to chicago and new york?
The homes of US important stock exchange. Chicago and NYC.
46:55 look at the closed caption compared to what he is saying in English.