The Wall Street Code | VPRO documentary | 2013
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- Опубликовано: 3 ноя 2013
- A thriller about a genius algorithm builder who dared to stand up against Wall Street. Haim Bodek, aka The Algo Arms Dealer. After Quants: the Alchemists of Wall Street and Money & Speed: Inside the Black Box. This is the final episode of a trilogy in search of the winners and losers of the tech revolution on Wall Street. Trading on the financial market is not longer dominated by humans, but by super fast computers and algorithms. The result of this digital revolution on Wall Street is a complex and fragmented financial system that is hard to understand and overseen. A system that we are all connected to. The only people who understand the system a bit, are the people who built it.
Haim Bodek started his own high frequency trading in 2007 and built a from his point of view perfect and fast algorithm. One day it just stopped working. Profits disappeared en he went looking for the cause. He decided to go public with his search to display the rotten system.
Originally broadcasted by VPRO in 2013.
© VPRO Backlight November 2013
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Credits:
Director: Marije Meerman
Research: Gerko Wessel
English, French and Spanish subtitles: Ericsson.
French and Spanish subtitles are co-funded by European Union.
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"A lot of people copy me, sure, but thats ok, it moves the world forward"
If you want to be original, be ready to be copied. Coco Chanel.
This is an amazing documentary. It is a must watch for all financial professionals and those who are fascinated by financial wizardry.
Same old saying goes here: The less transparent the market and the more complicated the securities, the more money the seller is going to make on you.
I spent five years trying to figure out how to trade for a living. Eventually, I honed in on a hedged options-selling strategy that returned 20% every year for three years...then I burned out from the stress of worrying about the volatility that I'm convinced is the result of algorithmic trading--enough of the quants have the same ideas, so that intraday moves are exaggerated by them all piling onto the trend. This documentary, and all of the insiders who participated, really prove what I already knew (to some extent). I can say for certain that this is no conspiracy theory, because I spent enough time trading to know that the markets are, in some ways, rigged.
Did you ever hear of Indira Singh ? - Ptech - "9/11" . She was an analyst programmer for a
big bank doing "risk" and "unusual trading" watchdog programs.
The markets are def rigged,good catch if u wrote this comment yrs ago
Frank Caruthers - ✌️All we have to do is have a simple understanding of how excel works, then add a little bit of manipulation and there you have it!
These people are not clever since they use simple tools, where they are different is their psychopathy!
Ranjit Tyagi why did you have 70k in anything ? Risk management is a great thing
L N jb
"90% of finance doesn't know how the stock market works"
I started off with the impression of this being a very shallow and "hyped" sort of production. But then, about 15 minutes into the video, things really shifted. Very informative, concise and valuable material, thank you for making this publicly accessible!
- N
For those who want to dig further into what is now known as the "order type controversy", I have posted links to the major news articles and associated media on my web page. It has been a long slog since the news first hit in early 2012! Quick Update (4/2016): Bats/ Direct Edge settled the order type allegations with the SEC in Jan 2015. It was the largest fine against an exchange in US history.
How in the world did the exchanges introduce order types without the actual traders knowing new order types were introduced?
Haim Bod
word of mouth amongst the elite traders?
Haim Bodek ...controversy," I have...
Haim Bodek how are things now 3 years later Haim?
This is why I enjoy RUclips. A video leads to another then another and then I am now watching this great documentary.
At ~34:15, it mentions the sheer amount of money that "evaporated" during the flash crash in 2010. Wealth does not evaporate. That wealth was transferred to the people shearing the sheep.
The share went from 10 to 20 because people paid that amount of cash for the share,then for whatever reason the stock started to sell off.those who sell their shares before they get a loss get more than those that that take a loss.basiclly the money that bought the shares was all there,it's just the money got shuffled around😂
@vernon padilla wrong there is always someone on the other side of a trade - you obviously don't understand
@richard mccann he doesnt have to - there is a God of justice... for thieves...
@vernon padilla how do you think price falls?
@@rjbz554 So true...you are right on the money....or should I say "spot on"?
I have a PhD and I understand all those PhDs that prefer to trade than to cure cancer. As a scientist you are always at the brink of starvation jumping from contract to contract and from country to country. The trading world seems to offer certain stability or at least lots of money to buy your stability.
Dated 2013 ... it would be great to have a "Where Are They Now ?" follow-on doc on these guys...
Should be in jail.
Extremely well-made documentary film about the ins and outs of a tiny piece of an irreducibly complex puzzle.
No - it is reducible - there are socipaths who rig and steal.
@@rjbz554 cutting a long story short😷😊
Pretty odd that after superstorm Sandy, the Fed Reserve bank of NY moved their trading desk literally right nextdoor to the CME servers in Aurora... Would love to see a full audit at transaction level detail...
Thank you for speaking up about all the secrecy’s, corruption, and computer fast trading happening in the trading world.
Thanks Haim for Sharing this very Informative Quartz and, Quantum Computers Work. 🔥🔥🔥💯💯💯.
An amazing documentary - it seems like tech is moving too fast for the rule makers.
free electron no they are partnered with the rule makers behind the scene.
I am watching this in 2018. The content is eye opening.
I am watching this in 2019
2019
March 2019... 832,790 views
I'm reading this in July 2019 - 956,000 views
I'm watching from the Second Great Depression in 2020
VPRO, you do great work. I only wish you could do more of it.
the production on here is sick good job !!
Love what you do in the space. thanks!
Gr8 doc!!!! thanx for the upload.
Haim’s code failed. The instant before the deal, many clients were suddenly “teleported” in line before him. And were serviced before him. For 12 months, Haim searched for the error in his code. There was none.
During a social event, Haim learned the real reason: his order type was "wrong". First time Haim heard about “incorrect order types”. Apparently, the "right" order type buys you precedence in line! Give the "right" person / agency some extra money. It's an old trick. Like bribery.
Louis Boer - That old trick, the one that goes back to the beginning of times....
Bribery!
OMG we deserve to become extinct!
You just saved me an hour on this annoying tease of a documentary.
@@stevep8363 This is why I quit being a licensed stock broker after 10 years from 1996 to 2005 in New York. I was a NYC trader. I used to watch 3 different quotrons. People don't know there are three simultaneously markets. First, second and third markets. The one the public sees is delayed by about 2 seconds, the second market for institutional traders, mutual funds, hedge funds aka inside traders used to push the market or help tank it was for profit taking. Then there is the third market for big wires, big bank block traders that manipulate the markets up and down with SOES " Short Order Execution Systems " using intraday borrowing, "Day Traders", then there are margin traders that have 3 days to fill orders they usually short as they wait for the market to tank to buy back stock to fill short orders. Big banks use global arbitrage against time zones from around the world to get first in first out trades before the New York Exchange opens...or other markets around the world. High technology turned the market into a gaming industry.... its a manipulated crap shoot casino based on inside trading. A big skimming machine where the little fish mostly get eaten. I quit because I could not stand the corruption or the CRIMINAL characters I had work next to. The movie "Boiler Room" is a true story. These guys are lying. They kmow whats going on. Good liars but not to me. These stocks are pushed and pulled. They big players know in advance. They are the ones doing it globally everyday in every way.
Proud Patriot damn that’s interesting thanks for sharing the knowledge
Excellent - research - explanation - explication & presentation -
very informative & educational - entertaining & Enlightening -
Thank U - VPro
Makes me long for the good old days when pirates used swords and cannons, rather than algorithms.
Algorithms do more damage...
This video is such a basis for personally handling YOUR income and wealth. I invest in ONLY 3 things. Silver/Gold, Real Estate, and my Business.
All things that I have direct control of
Jay- Rus I am in the market now. Got some bio stocks and mining stocks. Once those go to my sell level I will walk away for good from the market.
Excellent doc, thank you!
Incredibly well done.
'The Levee' in the soundtrack, appropriate..and cool!
The most important info is @ 48:30: That most traders live with fears. ... The stress is unbelieveable.
That is true. I trade and as soon as I hit "buy" it's like I'm holding my breath until I hit "sell" which could be 2 days later. I love doing it but hate it at the same time. The epitome of a Love/Hate relationship.
@@YourRealDaddy bet a lot of heart attacks happen in that job. Watched Nick Leeson film. I felt for him. In way too deep😱
If you feel stressed your strategy is not the right one for you... E.g. risking too much size or holding trades overnight
This is fire!
I am glad, I found you’re channel. Excellent documentary’s.
This documentary validates the consensus that the economic system as we know it must be destroyed. Too much corruption, too much manipulation, too much extraction, without ever producing anything of value. Only raising the price of everything in the name of profit.
I am not saying that investing in a project or company or idea that will make everybody's life better is a bad thing, I am saying that the "markets" have been twisted to a point where they no longer represent investment, they only "extract wealth" through manipulation, and therefore no longer are a "benefit to society."
Excellent expose, thank you!
Holy shit! I just stumbled on this randomly. I live with Haim's cousin
Try to get some "inside" info to share with us....just kidding
This is awesome.great insight.
Amazing documentary!
any more recent stories on this? sounds like shit was pretty intense in 2013. it doesn't seem like it's ruined the system yet. I need a 2015/ 2016 update on this story.
As one of the guys says, if people would know, they would do something about it. Why people don't know? Media do not inform them about it. But lucky we are to know when celebrities fart. :D Love VPRO. Keep the good work going.
We still get to hear when celebrities fart (Trump :D)
so true
Anytime you hear the word "investors" in a news report of daily market moves, you know that the reporter has no idea what he or she is doing.
Even if 100% percent of the public knew about this, nothing would get done about it.
Excellent doco! Thanks!
Thank you for watching Alex!
The world as we have known it has come to an end... .it will never be the same again.
John Smith - Agree!
YES YES YES! I FOUND 1 WHO SEES THE TRUTH,THE HEARTBREAKING REALITY,YOU ARE LOOKING AT THE HANDFULL OF MEN WHO THROUGH THIER GREED& POWER THRILL SEEKERS,HAVE UNWITTINGLY,TAKEN AWAY FROM THE WORLD,FROM YOUR CHILDREN,YOUR GRANDCHILDREN,ANY CHANCE OF ,EVER EXPERIENCING THE SIMPLE TRUSTING SOCIETY THAT I,MY FATHER& GRANDFATHER LIVED! THESE SOB'S ARE THE RUNAWAY ENGINES THAT ARE& HAVE DRIVEN FASTER& FASTER THE PACE THAT WE ALL MUST KEEP IF ANY HOPE OF LIVING ABOVE POVERTY IS DESIRED,THAT FUELS THE INDUSTRIES THAT ARE& HAVE DRSTROYED MY,YOURS,OUR CHILDREN'S EARTH!
That Metalica concert analogy was really good.
All he had to say was its supposed to be "FIRST IN, FIRST OUT" but the market is completely manipulated fraud.
Battling algorythms makes Tron come to mind.
Top Vid !
To play the markets you either have to be a genius or a madman
my father is both.
im in the middle of the 2.
transfer of wealth: the movie
This is like MATRIX. You'd know what's the next move before it even occurs. Super-fast ! Incredibly amazing. It's like trading in a millisecond with a speed of light !!
HFT isnt really about knowing the next move its more about being there first when its time to make a move. Computers do not assess a companies true intrinsic value.
+Saleh5858 Actually, today's algorithmic programs are trading by the nanosecond. Not at the speed of light, but the data being transmitted certainly is moving at that [exact] speed. Only because they're using fiber-optic cables though, like you and I are now.
It's 2020...That little documentary barely scratched the surface.......
I have watched this video so much I have lost count and it is as AMAZING NOW AS IT WAS when I first watched it! Haim is "THE MAN"
first tablet in 83. crazy
+Amaz Ingman Crazy is naming some unfortunate lad "Amaz."
And touch screen.
Todd Rundgren developed the first tablet in the late 70s.
There are a lot of private persons who trade through apps where they follow other trader ( they buy what ever the persons they fowllow buys). You should calculate this too, it becomes verry important soon.
excellent doc, thank you
Great documentary
The speech at time 36:36 -- 38:05 is what I came for and what I suspected all along. Mostly everything else was handled in Flash Boys by Michael Lewis.
True that, they love to say the wealth evaporated, but where there are debts there are also people collecting them.
Awesome! thank you
That was pretty darn interesting. Never even knew any of this existed...
The algorithms are not the problem - they are just a tool. The problem are the "liars" about potential and opportunities.
Special order types are documented, just need to look in the right places. Many ways in which insiders control the market to exclude other smaller players.
The failure of Bodek here has nothing to do with order types. He is trying to exploit mispricing that last milliseconds and he doesn't know shit about actual finance. If he did he would not be bitching about the most liquid market in the world.
People like you and me are not affected by these factors. You would need a mainframe to trade at that level like these clowns do.
I agree with you! I stopped losing money when I stopped doing day trading. Today I just do "buy and hold" and I am very confortable with it.
Wonderful....
Fascinating
The market is all about PERCEPTION.
I love how these guys think it’s relevant to mention HTML and CSS in their portfolio
Wow. It is now, April 7, 2020. This video explains- a lot.
Very good!!
This makes my head hurt.....which is probably why I'm still poor :)
Don't worry as you have less chance of a heart attack.
You're still poor because you are enslaved by the United States corporation who not only steals your money every two weeks but your labor and then they put law enforcement on the roadways to molest you extort you and entrap you sue makes you contract with them so they steal the rest of your slavery dollars when you have to go to court which is owned by the Queen of England but it's in the United States yes The Fringe that is gold and that hangs around your so-called false idol American flag yeah it's owned by the Queen of England and every single courtroom in the United States corporation belongs to the Queen of England meaning every lawyer and attorney at law is also owned by the Queen of England because they register at something that's called the bar association well the bar association is located in England guess who owns it you guess correctly the Queen of England actually who is illegitimate sitting on her throne because why her father was off fighting either the Irish war or the Italian war her Babylon whore of a mother Queen Elizabeth's mother got pregnant with Queen Elizabeth why her husband was away fighting in a war that means she's illegitimate sitting on her throne
@@shaeshae5610 Mmm interesting any links to a video I can watch about this
Here in 2019
VERY INFORMATIVE VIDEO.
Thank you for the TRUTH! Fresh Air now I am aware!
Great opinion about patents....copying moves the world forward-wonderful ethos....
Obviously an open source software/hardware proponent...
fascinating documentary. i wonder what's going on with all of this nowadays?
More competition drove down returns. Exchange wanted more volume so when the algos sold down the line the margins dropped substantially.
Looks like it’s working great!
I always knew of this algorithm game but never looked deply into it... so great documentary... however... so much information... that left me knowing NOTHING about this obscure world. And seemly... the very players who make part of this world.. dont know it neither. Well, that made me feel better.
Haniff Din No its not. This is them just taking a micro view into the market. You don't need to be a genius to trade basic products
Haniff Din Yea you can. Also, define serious money. HFT is much more exaggerated than it really is. Matters more for the day traders scalping for peanuts.
Haniff Din Yea because forums are for trolls and people who don't trade. I had a client with $10,000 make $2,000 last week alone. The guys in this video, Lucci/Peter make money with $100K accounts, less even. You don't know what you're talking about, like 99% of the people commenting. You don't work in this field you just watch these sensationalized documentaries. HFT firms make a ton of money but so can everyone else. Will you make the kind of money they do? No, not at all, but to sit here and say you need $300K shows your lack of knowledge.
True. I mean, you're not going to clear much money even with a $5m fund unless you're extremely good. The issue I have with this video is that it's essentially HFT guys v. HFT guys, they're in their own world hustling eachother. I mean if you and I miss out on $0.02-$0.07 a trade it doesn't matter. So ya, I agree with what you are saying but again this HFT game is just one method of extracting alpha from markets, its not the holy grail nor should it stop retail from getting into the markets.
Haniff Din i disagree Warren buffet said you dont need to be a genius to be a good trader, and i guess we i know hes the King of trading...
Absolutely amazing documentary. There are a few ways to avoid HFT but with limited liquidity. Pension funds simply don't care if they lose 0.x% on entries/exits as they're chasing double digit returns and not investing their own money.
It seems like thieves stealing from other thieves.
Thomas Peterffy, the owner of Interactive Brokers is now worth $20 Billion instead of the $6 Billion he was in this video. Incredible.
Interestingly he doesn’t sell order flow like the other brokers, he’s a good guy!
@YexaC If that's your perception, then that's your reality. I think I would be a better guy with 20 Billion.
Damn *nods head in disbelief* serious $hit. My heart goes out to you Haim.
Those people and their mad trading machines are nothing more than parastes on real life.
This Documentary shows why the @Ethereum project is so important!
Look at Ethereum now.
F*ck Crypto. Another Tulip Bubble. And I have been saying and writing that since Bitcoin hit 18k.
Blockchain? Cool technology. Crypto is for crooks.
Michael Lewis - 'Flash Boys'
Brilliant
Bodek is secretly the lead vocalist of smashing pumpkins
Can you just imagine if these greedy Wall Street computer geeks would actually put their enormous brain power into something that would actually HELP mankind??
No money on that
OK,so this is now out in the open , Nice ! 👍
Nothing can be done about it , not so nice 😲
great documentary
A bunch of scoundrels! Interesting documentary.
Money for no production of products. Numbers on screens. Just like churchmen, I have a voice in my head, and it says give me your money. No work, no products.
The paper in your wallet is NOT MONEY! It is currency. Money has to be a store of value like precious metals. Anything else is credit. The spot price of these metals is NOT the real price as the spot price is derived by trading futures contracts so it is not real. Try getting physical gold and silver atm. The mints are running dry. The price is going to skyrocket. The only problem is there is no way of protecting your physical gold as all the governments around the world have disarmed their people except for 1. The USA.
@ 41:00 Peter Zhang doesn't run a hedge fund. Sang Lucci is not a hedge fund and none of those traders are FINRA registered.
This only solidifies why the stock market needs to die
This next Collapse and Depression very soon 2020 these Criminals are gonna be pulled from their Rat Holes and Clubbed like Baby Seals at Harvest. Hope they put that in their Algorithms.
So well said. I'm with you on this. Greed hurts people.
E. G. Hmm, interesting
Good time to buy into things after the market truly implodes, and that hadn't happened yet.... Atleast as much as it will. I'm just waiting.
I pulled all my money out of stocks early 2020 and after a month the place crashed, and I'm still waiting cause there is no way its fallen to what its going to
You think they did not know about this? Or participated in planning? That is foolish thinking. It us that are gonna get clubbed.
There's two ways to look at the world. "What can I do to make this better than I found it" and "what can I get away with?"
Good one.
Even if it meant trades being a half to a millisecond slower,
-20:18- wouldn't fiber optic cables be more reliable?
All this one day will just become a thing of the past.
The stock market is ponzi scheme propped up by consumer cash. The market will "correct" when the next generation gets ready to retire, about three months ago. The only thing is that the money has already been spent on Manhattan Rent, Booze, cab rides and five star meals.
Well technically...😂🍻
When you make money simply off of having money you will create a very very large wealth gap. I think this corona virus is going to show people this when the billionaires are making the greatest profits they've ever seen while people literally starve.
But the system and wealth gap has always been quite significant. That was before the virus generations back.
Could the sec require all codes be made publicly available?
Does this flash trading affect the derivatives markets at all (credit default swaps and interest rate swaps in particular)?
Obviously. These are algorithms that attack the foundation of all trade
At the end of the day they are just scammering thief's they just complicate it so you don't understand it and won't look into it
WELL SAID MAN. THAT'S ALL THIS IS. A LARGE SCALE SCAM.
Quest Infinity And it starts with the “federal” reserve bank, a PRIVATE CORPORATION
Thats the federal reserve system, the biggest heist in history and no ones asking questions :P
thieves😊
The stock market is ponzi scheme propped up by consumer cash. The market will "correct" when the next generation gets ready to retire, about three months ago. The only thing is that the money has already been spent on Manhattan Rent, Booze, cab rides and five star meals.
Hahah I wish everyone could see this video. Oh well.
'C' is a beautiful language to work with...
Interesting video, but they never revealed how some large traders were jumping the queue or with what order types.