Chapter 654: Quantification! Hidden Really Deep
"Lu Liang, did he really leave?"
Time ticked by, Doug dared not make a rash statement, and could only look to Wilson for help.
His intuition told him Lu Liang likely left, perhaps only retaining a small amount of funds in his base positions.
But after following Wilson these years, he saw him rise high, entertain guests, and then crash.
Wilson prided himself as a top hunter, believing everything was under his control, yet he was led by Lu Liang, step by step, into a deep abyss from which there was no return.
Doug didn't want to repeat the same mistake.
"Tianxing's funds, probably haven't left," Wilson glanced at Jamie, wanting to argue one last time.
Although he lost this time, he dared to boast that no one on Wall Street knew Lu Liang better than he did.
Lu Liang's appetite isn't that small, nor is his heart that large; there's no way he won't seek revenge.
"Intuition," Wilson replied.
Doug sneered, too lazy to argue with Wilson verbally; if Wilson's intuition was right, he wouldn't have taken this position.
Doug contemplated, having made up his mind: "No more waiting, release a short position of ten billion first, see the market's reaction."
This time, closing the deal was a test from Jamie to him, with a benchmark of $190 billion in losses. The less the loss, the higher the score.
With the release of a $10 billion short position and the beginning of closing positions, the London gold price suddenly broke through $1800 per ounce.
"Damn, finally took the bait."
In the Modu Tianxing Trading Room, Lu Liang smiled at the corner of his mouth, climbed onto the high platform, raised a cup of coffee as if it was wine, and shouted: "Close the net, send them to the West. The celebration banquet is already prepared for you."
"Yes, Mr. Lu!"
Liang Wenhu was full of excitement, as Huanfang's self-developed Firefly Model No. 1 was finally about to debut on the international stage.
If some achievements were made, it'd be a small step for Huanfang and a big step for the development of domestic AI technology.
Because the essence of quantitative trading is the competition of AI algorithms, even though it is currently used in the financial field, its application scenarios are not limited to finance.
For instance, manufacturing, smart home, healthcare, security, transportation, retail, education, entertainment and gaming, smart cities, environmental protection, and many more—all are widely considered to be the next era's megatrends.
Previously, the AI domain had been led by Western tech giants worldwide.
Liang Wenhu was disgruntled; making money was just a means for Huanfang Quantitative, and what he truly wanted was to change the world.
Meanwhile, at the JPMorgan Chase Trading Room, Doug had yet to implement the strategy of buying more and selling less for clearing positions.
At the moment London gold price broke through $1800, over 300 long-position orders were generated in a second, further driving up the London gold price.
Amid the frequent transactions of small-volume long orders, London gold skipped the process from $1800 to $1810, directly jumping to $1812.
Doug's expression was flustered, no trace of his previous calm: "At this price, someone dare to trade at high-frequency quantities!"
Since taking over the project, he started locking positions going long, eventually investing hundreds of billions and earning several billion.
He painstakingly reduced the $190 billion loss to just $182 billion, but in a blink, the floating loss suddenly exceeded $200 billion.
And the $200 billion floating loss continued to rise, quickly reaching $211 billion.
Due to the unexpected surge, the long market in London gold fell into complete frenzy.
Countless retail investors cheered: "$1850, $1900, even $2000 isn't a dream, getting rich overnight, today!"
Emotion is the most irrational thing; once ignited, even a lump of shit can be hyped to gold prices.
A wave of fear spread in Doug's heart; he dared not turn back, fearing Jamie's disappointed or angry expression.
"Didn't expect Tianxing also adapted to the times, introducing quantitative models."
Wilson felt utterly mixed emotions inside; indeed, he lost not without justification this time.
London gold had already surpassed a $100 increase, which was an extremely exaggerated range.
To dare conduct quantitative trading at this price level, the cost price must be sufficiently low.
Low cost, capacity to swallow ten billion, and the courage to do so—currently, only Tianxing meets these three conditions in the market.
"You guessed it?" Jamie's face was gloomy, like a volcano on the brink of eruption.
In just a moment, another $30-billion loss was added, and judging by the trend, it was just beginning.
He was already beyond his ability to bear; if not tackled in time, he might end no better than Wilson.
"I felt Lu Liang might still have a card up his sleeve, but I didn't expect it to be quantitative," Wilson honestly said, with no intention of hiding.
He couldn't help but feel a bit pleased inside; Lu Liang indeed was the man he appreciated and never forgot, executing the art of war to the extreme.
With the introduction of the quantitative model, Lu Liang inherently gained an unbeatable position in this operation.
Even if he lost in the prior long-short hedges, as long as there's enough capital to persist until the coming of the golden age.
He could make up for the previous losses through quantitative high-frequency trading and might even make slight profits.
Jamie remained silent for a moment, then sighed: "Any good ideas to cover this part of the losses before the annual report?"
He no longer hoped to balance the accounts in the third and fourth quarters; he only wished next year's annual report could look respectable.
"Only if there's a miracle."
Wilson looked at the trading details on the big screen, with a transaction value of tens of millions of dollars generated in a second, and the gold price rising in trades.
Without surprise, Tianxing's main force funds were hiding in this transaction amount of tens of millions per second.
"A miracle, huh?!"
Following Jamie's gaze, he revealed a thoughtful expression.
Thinking of a saying from East Country, only the bell ringer can untie the bell; Lu Liang himself was synonymous with miracles.
He looked at Doug still engaging in futile efforts and Lar with a worried face, pondering briefly and said: "Good vision, they look much prettier than you, probably someone will like them."
"For the time being, let them replace you in going to the island; I'm giving you a quarter, and before the Q3 report, I need a certain feasible plan."
He wanted to elect a general among dwarfs; Doug had been following Wilson so long, betrayed for merit, so he'd give him a chance.
Just didn't expect, it wasn't that teammates were incompetent, but that the opponent was too invincible; switch anyone, it'd be the same.
"Thank you," Wilson replied seriously, raising his right hand in a fist, thumb up against his chest, deeply bowing, showing absolute allegiance.
Jamie spoke in a deep voice: "You still have a chance because you're still useful; otherwise, you'd be abandoned like you abandoned them."
"I know."
Wilson nodded solemnly, pondering for a moment, then asked: "I want to know, what's the limit of resources I can utilize?"
"That's your problem. I only have one expectation, for next year's financial report to look decent."
Upon hearing Jamie's words, Wilson knew he could use unlimited resources.
Even if sacrificing long-term benefits were necessary, that would be the responsibility he'd bear.
But he was nearly sinking into hell already, so why would he care about strategic errors later?
Meanwhile, at the Blackstone Fund Trading Room.
"Quantitative trading! Hidden really deep."
Su Shimin suddenly laughed; when helpless, one had no choice but to laugh.
Major institutions have fund monitoring and designated supervisors, so they know Tianxing Fund has used quantitative trading.
But retail investors and hot money are unaware; they only know the golden age has arrived, speechless, only knowing to go long.
They seemingly have two choices on the surface, but actually have only one, which is to follow the trend and go long, helping Tianxing to lift the sedan chair.
This illustrates Lu Liang's cleverness, because the second wave of the $1800 market, although initiated by JPMorgan's attempt to close shorts, caused by Tianxing's sniper.
Yet Lu Liang wasn't greedy at all, only wanting to snipe JPMorgan's short positions, leading to no one harvesting in the second wave trend followed by retail hot money.
JPMorgan locked positions worth at least $500 billion, Tianxing couldn't consume that much, let alone those following retail investors and hot money.
Profit opportunity laid bare before them, they had no choice but help Tianxing lift the sedan chair, allowing him to cash and leave with peace of mind.
Because once Tianxing left, they'd dictate the market, JPMorgan along with following retail investors, just like children's toy mud; they could mold however they liked.
"Kamon, look at your bastardly deeds." Su Shimin sighed deeply.
Lu Liang hogging all wealth wasn't terrifying, because someday it'd incite public wrath, and even the referee's entry wasn't impossible.
However, now he's introducing quantitative trading and knows to share his profits.
If there's another chance for encirclement in the future, some might not fully commit to it.
Wall Street's major institutions have political motives, that's true, but institutions are institutions, and individuals are individuals.
Some fund managers and even investment bank chairmen only care about the financial report and whether their positions remain stable.