NOVEL WEB Chapter 633: They Seem to Have Forgotten the Pain
"Release part of the locked funds to slightly stimulate the market."
As time passed, Lu Liang had long completed his transformation in the international financial market.
In the past, he was weak and could only operate by leveraging others' strength, with large institutions taking the lead, while he picked up some leftovers from their efforts.
However, with an increased appetite and growing funds, the Tianxing Fund has become a significant force in the market that cannot be ignored.
He is unwilling, and cannot survive on leftovers.
Just like this time, as the trade conflict between the two countries escalates, it is bound to have a profound impact on the international situation, and everyone knows that gold will rise and the renminbi will fall.
But when they will rise or fall, how high or how low they will go, are unknowns to others, but known figures to Lu Liang.
However, with his level of funds, it's impossible to quietly move without drawing fire.
Even if he has no intention of targeting others' funds, others might still categorize him as an adversary, wary of his sudden attacks.
This market is fair; to earn big, one must become the flagbearer, to undertake the risks of leading the charge.
Just like there is no free lunch in the world, there's no reason to earn more without taking any risk.
"Should we guard against them a bit?" Sun Yutao expressed his concerns.
State Street is like a hidden mine, unpredictable as to when it might explode.
If they only focus on charging ahead, it's easy for gaps to appear in the defense at the rear.
Lu Liang shook his head, "Not yet, because the market hasn't moved yet, and we haven't invested enough, they aren't so easily baited."
If State Street were to backstab, from their perspective, they would certainly want to maximize their own benefits and inflict massive losses on Tianxing.
As of now, the market hasn't started; Lu Liang's 5 billion dollar capital, has only invested less than 3% of it.
Text acquired from M|V|LEMP&YR.
The 1 billion dollar base funds were invested three months ago, at a cost price of 1622 dollars for London Gold and 6.7500 for offshore renminbi.
Unless the S3 season officially kicks off and the global financial system collapses, this initial investment stands to lose only up to 10%.
If they miss the opportunity to target 45 billion dollars for just a hundred or two million, even the dogs back home in Lu Liang's village would laugh to death.
Sun Yutao nodded and gave orders to prepare to release the 1 billion dollar locked funds, thus firing the first shot.
Liang Wenhu was pensive, suddenly realizing why Lu Liang was so eager to introduce quantitative trading.
Based on his understanding over the past few days, Lu Liang indeed holds a certain status in the international market and is an ally of numerous institutions on Wall Street, but they are not exactly in the same camp.
At least from the current actions of going long on London Gold and shorting the renminbi, Tianxing might face backstabs from its Wall Street allies, hence he needs to introduce quantitative trading to become a game-changer.
There's an adage in domestic and international financial markets: knowing when to buy doesn't count as a talent, knowing when to sell is real skill.
This saying might be perfectly demonstrated in this round of market movement, as everyone wants to make money, so who will lose money?
In a situation where market tendencies are highly aligned, those who move slowly often become the ones to lose money.
If any Wall Street ally wants to backstab Tianxing, they must seize the most accurate selling point.
They just need to sell ahead of Tianxing before this round of market ends.
In doing so, they can not only maximize their own interests but also cash out by stepping on Tianxing's head to exit.
If it truly comes to that, Tianxing would have only two paths to take.
Either cough up the previous profits, principal and income together.
Or resist to the bitter end and forcibly create a new wave of market movement.
The former is cutting losses, nothing much to say.
The latter may lead to irreversible consequences, like selling cars and houses to continuously average down in a shadowy market.
But funds will eventually run out, especially since Tianxing is using three times leveraged funds.
Even with a 15 billion dollar capital, there's a potential for liquidation.
Lu Liang certainly realized this, which is why he adopted the quantitative trading model for the first time.
Because the world's top traders can make at most five trades in a second, but quant trading can achieve 200 trades per second, and their Firefly One can achieve 300 trades per second.
Following this line of thought, Lu Liang's plan gradually becomes clear.
While others want to step over Tianxing to cash out, Tianxing also wants to step over them and walk away stylishly.
The victory standard for this financial war isn't who earns the most or whose buying timing is most accurate, but whose acting skills are better and who has a sharper nose to catch the most precise selling point.
It's a bit like the old casino game "Call 8," where no matter how many participants there are in the game, there's definitely a fixed Ace of Spades in there.
Each person is dealt a card, starting to call numbers from one, and they keep raising bets with each successive '8,' using expressions and demeanor to judge whether the person holds the Ace of Spades.
If true, the challenger wins all the prize money, if false, the challenger is eliminated.
After round after round of eliminations, the prize money gets higher and higher until the final winner is determined.
However, the 'Call 8' casino game is still child's play compared to the games in the financial market.
The financial market demands higher acting skills, and when retreating, one must be decisive, accurate, and ruthless, while also making the market think it's an attack, providing cover for oneself, colloquially known as holding the bag.
Quantitative trading may hold the key for Tianxing to win unexpectedly.
Because previously, the impression Tianxing left on the market was always bold moves, either violently smashing the market or aggressively pushing it up.
If a Martial Artist suddenly turns into Eastern Invincible holding a needle, it could catch them off guard.
Lu Liang explained some matters to Sun Yutao, then looked at Liang Wenhu: "You'll be in charge of quantitative trading."
"Set the trend order of the London Gold AI model to 1748 US Dollars, and offshore RMB to 6.8900."
"Buy on dips, wait for my notification on when to sell."
"Got it, Mr. Lu." Liang Wenhu was very excited, he would personally witness this financial battle worthy of the history books.
Lu Liang nodded slightly, patted him on the shoulder, and everything was understood without words.
He knew this operation was very risky, far more risky than before, a slight error could mean losing everything.
He could avoid it, there was no need to take on such a big risk, but one can duck for a while, not forever.
If he withdraws this time, then what about next time, and the time after that?
The cake is only so big, the bigger Tianxing gets, the more it eats; if they eat a little less, others will eat a little less too.
The greed of the human heart is endless, if a battle must be fought, fight until they fear, tremble, and have no choice but to accept Tianxing again.
"It's been less than two years, have they forgotten why we chose to make peace initially?"
Lu Liang squinted, looking at the big screen, Tianxing hasn't shown its fangs in a long time, they've forgotten the pain.
To gain a foothold in the international market, it's not about going in kneeling and bowing, but fighting your way in with punches and kicks.
It was only when they had no choice that they accepted Tianxing, leading to this relatively peaceful time.
New York Time, nine-thirty in the morning.
"Stars (Tianxing) has entered the market!"
A series of low roars echoed through the trading rooms of major institutions on Wall Street.
JPMorgan, Goldman Sachs, Citibank, BlackRock, Vanguard—the world's institutions that can instantly bring out ten billion dollars are just these few.
They had already come to an agreement earlier, this time the target is to long gold, short the RMB, and give Lu Liang a good lesson in the process.
Tianxing has mobilized no less than 40 billion dollars, and along with some stray institutions and retail investors, it's enough to feast themselves full without needing to self-destruct.
So this fund wasn't deployed by them, it must be Tianxing, and even if it isn't, better to err on the side of caution.
JPMorgan Chase trading room.
Wilson sighed deeply: "Such an artless way of entering, it can only be him."
He admired Lu Liang; he had once retreated time and again, but one's patience has limits, and Lu Liang went too far, always betraying his goodwill.
Sigh, it must be destroyed.
"Follow along, first suppress the gold price, let the RMB fluctuations run, aiming to anchor the main battlefield in London Gold as much as possible."
Wilson's expression was grave, he hasn't forgotten the pain after healing, the lessons Lu Liang taught over the past three years, he reviews every week.
To the extent that even though nine-tenths of Wall Street's major institutions were gathered this time, he still felt uncertain, needing to confirm the main battlefield first.
It was also to learn from the lesson of Soros shorting Xiangjiang back in the day, without mainland support, little Xiangjiang could never hold off against Soros at his peak and the capital consortiums behind him.
Temporarily give up shorting the RMB, anchor the main battlefield in London Gold first, as long as Lu Liang takes the bait, they can jointly form a strangling force, and then East Country, even if they want to save, would have no suitable reason.
With a series of orders issued, the London Gold, which had just opened an upward channel and was ready to take off, had its ascending dragon forcefully decapitated.
Tianxing unlocked its warehouse, releasing 5 billion dollars in funds, apart from that long, red K-line on the time-sharing chart.
It was as if no traces were left in the market.
Current London Gold price is 1702 US dollars/ounce.
At the same time, in the US Dollar to RMB Foreign Exchange Market, with the release of 5 billion dollars the downward channel was opened.
A large number of retail investors followed to short, eagerly joining in this speculative feast, dropping 500 basis points in an instant.
The US Dollar to RMB exchange rate came to 6.8800.